Under the terms of the agreement, lenders will take control of the vast majority of C&J shares in return for forgiving the debt.
However, about 6% of company shares will be distributed to existing shareholders based on their pro rata holdings.
This arrangement appears to leave US drilling giant Nabors Industries, which holds about 53% of C&J’s common stock, with a little over 3% of the newly capitalised company.
C&J
