Under the terms of the agreement, C&J’s lenders would allow the company’s entire $1.4 billion debt to be converted to common equity and have agreed to provide debtor-in-possession financing while they complete the transaction.
In addition, they have agreed to an “infusion of new equity capital” in the form of a back-stopped equity rights offer.
In the meantime, the lenders have agreed to a second forebearance plan that allows C&J to suspend payments on its debts and waive certain covenants associated with its credit facility.
“We
