A Houston, Texas-based logistics company has filed for bankruptcy protection amid the fallout from the Coronavirus crisis.
On July 13, Hi-Crush Inc. announced that the company filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas.
The bankruptcy filing is part of a restructuring plan that will allow Hi-Crush to continue normal day-to-day operations without disruption, the company says.
According to the bankruptcy petition, Hi-Crush lists total assets of $953.08 million and total debts at $699.14 million as of the end of March 2020.
Hi-Crush already eliminated about 60% of their workforce since March as demand for oil slumped dramatically during the pandemic while Russia and Saudi Arabia launched into an oil price war. The company has also halted operations at Texas and Wisconsin facilities.
“We are very pleased to have reached this agreement with our various lenders,” said Mr. Robert E. Rasmus, Chairman and Chief Executive Officer of Hi-Crush. “The agreement will allow Hi-Crush to maintain normal operations and continue delivering high quality services to our customers. We will also significantly improve our balance sheet and enhance our Company’s financial flexibility over the near and long-term.
The fallout from the pandemic and oil price war have trickled down to impact trucking companies. Saskatchewan oil service trucking company Fast Trucking Service laid off 250 of 350 total workers in April as oil prices plummeted.