Forbes Energy Services Ltd. voluntarily filed for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of Texas-Corpus Christi Division on Jan. 22, according to Jan. 23 press release.

The filing is for itself and principal subsidiaries. Operations in the normal course of business will continue, and motions for “first-day” relief were filed, the press release said, noting that the court will hear the first-day motions on Jan. 25. The reorganization filing is pursuant to the terms of the restructuring support agreement with certain holders of 9% senior unsecured notes due 2019.

Forbes Energy Services’ liquidity will support its business during the reorganization, and there is provision for a $50 million facility to be funded through certain bondholders to ensure adequate working capital.

Other plans of the term include:

Extinguishing the existing equity interests including common and preferred stock;

Paying the holders of general unsecured claims, excluding holders of 9% senior unsecured notes due 2019. These notes will be canceled, and certain holders of these notes will provide a $50 million new first-lien term loan facility to the reorganized company; and

The loan and security agreement will be terminated, and a credit facility will be entered into with Regions Bank.

The debtors’ claim agent, Kurtzman Carson Consultants LLC, has made the bankruptcy court filings available on a website.

Pachulski Stang Ziehl & Jones LLP is the legal restructuring counsel. Winstead PC is the corporate and securities counsel. Alvarez & Marsal North America LLC and Jefferies LLC are the financial advisers for Forbes Energy. Fried, Frank, Harris, Shriver & Jacobson LLP is the legal counsel for the supporting noteholders, and FTI Consulting is their financial adviser.

Forbes Energy Services Ltd. was established in Alice, Texas.