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Frac sand supplier CARBO Ceramics Inc. emerged from bankruptcy on July 20 at “the start of a promising new chapter,” said the company’s newly appointed CEO, Don Conkle.
CARBO’s pre- and post-bankruptcy lender Wilks Brothers LLC agreed to take over the Houston-based company in exchange for its secured debt. Additionally, the company announced the promotion of Conkle, an industry veteran who has been with CARBO since 2012, to CEO on July 20. He replaces Gary Kolstad, who had served as CARBO CEO since 2006.
“This is a pivotal milestone and the start of a promising new chapter for CARBO,” Conkle said in a statement. “We began our restructuring process with the clear goal of strengthening our capital structure to best position CARBO to succeed in the future—which we have accomplished.”
CARBO Ceramics filed for Chapter 11 bankruptcy protection in late March as part a restructuring agreement with lenders Wilks Brothers and Equity Financial LLC to equitize CARBO’s debt.
Wilks Brothers is a privately held business headquartered in Cisco, Texas, led by brothers Dan Howard Wilks and Farris Cullen Wilks.
As part of the restructuring, Wilks Brothers committed to providing $15 million in debtor-in-possession (DIP) financing and consented to the use of its cash collateral to bolster CARBO’s financial position. Upon completion of the restructuring, CARBO has converted the DIP facility into a $15 million exit facility.
In a statement commenting on the successful restructuring, Justin Wilks, senior vice president of the Wilks Brothers, said: “We look forward to maximizing CARBO's potential and unlocking opportunities for strategic growth.”
CARBO’s operating strategy following bankruptcy will continue to be focused on providing products and services to the oil and gas and industrial markets, according to the company release.
Conkle joined the CARBO in 2012 as the vice president of sales and marketing. He has 34 years of leadership and industry experience, the company release said.
CARBO was advised during the bankruptcy process by Vinson & Elkins LLP, Perella Weinberg Partners LP (together with its corporate advisory affiliates including Tudor Pickering Holt & Co.) and FTI Consulting Inc.
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