Alberta-based GasFrac Energy Services filed for bankruptcy protection in Canada and in a San Antonio court last Thursday as it prepares to reorganize, making it one of the first companies to file for bankruptcy amid plunging oil prices.
The Chapter 15 filing in the United States is ancillary to the company’s primary filing in Canada.
The company expects operations to continue uninterrupted and will continue to meet obligations to employees, customers and key suppliers.
GasFrac said it has about $50 million to $100 million in assets and between $10 million to $50 million in liabilities owned to 49 creditors.
The company won a temporary restraining order from a San Antonio judge Friday to protect its assets.
A hearing for a permanent injunction is set for January 30 in San Antonio.
GasFrac’s primary secured lender, PNC Bank Canada, agreed to provide interim financing through Wednesday.
The company began drilling in South Texas in 2012 and is best known for a waterless fracking process that uses propane gel and liquid petroleum gases to break apart shale rock.
Gasfrac had been looking to sell off assets or ink an acquisition deal since it began facing a cash crunch last year.
The company said its continuing negative operating results,” limited access to capital markets and curbed activity amid low oil prices scuttled its sales plans.
Gasfrac plans to seek a court order “in the near future” to create a sale and investments solicitation process “intended to generate interest in either the business or the assets of the corporation.”