Nuverra Environmental Exits Chapter 11, $500M Debt Magically Gone

Nuverra Environmental Solutions (formerly Heckmann) is one of the largest companies in the United States that handles transportation and disposal of shale drilling wastewater and leftover rock and dirt from drilling. The company has major operations in the Marcellus/Utica region. In January 2016, the company, going through tough economic times, was de-listed from the New York Stock Exchange (see Nuverra Environmental Delisted from NYSE, Now a Penny Stock). In April of this year, Nuverra issued their full year 2016 update which showed a $169 million loss for the year (see Nuverra Environmental 2016 Update – Red Ink Slows, Some). And in May, the company filed for bankruptcy (see Nuverra Environmental Files for Chapter 11 Bankrutpcy). It’s now three months later, and Nuverra has emerged from bankruptcy with $70 million of new financing and magically dumping $500 million of debt. Like others before them, Nuverra turned its creditors into owners, swapping out debt for ownership equity, thereby screwing existing shareholders–their shares become so watered down they are worthless. As part of the restructuring, the old board of directors (former shareholders) are now gone, and a new board has been appointed…

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