Oilfield services company BJ Services filed for bankruptcy protection on Monday, after a huge decrease in oil demand due to the COVID-19 pandemic.
BJ Services offers hydraulic fracturing of shale wells. They said they are in discussions with bidders for sale of its cementing business and parts of its fracking operations.
“Severe downturn in activity and subsequent lack of liquidity resulted in an unmanageable capital structure,” said Chief Executive Officer Warren Zemlak.
The fracking company filed for Chapter 11 protection in a Texas bankruptcy court. They listed assets and liabilities of $500 million to $1 billion.BJ Services filed for Chapter 11 protection in a Texas bankruptcy court. They listed assets and liabilities of $500 million to $1 billion. Click To Tweet
BJ Services operates in shale basins in Canada. They said they would seek bankruptcy protection under the Companies’ Creditors Arrangement Act and wind-down operations in Canada.
The company said they are developing a plan with stakeholders to minimize disruption to current client activity “as much as feasible.”