Dixie Electric Successfully Completes Prepackaged Financial Restructuring and Emerges from Chapter 11

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Dixie Electric, LLC, dba Expanse Energy Solutions, and certain of its affiliates (“Dixie” or the “Company”) today announced that it has successfully completed its financial restructuring pursuant to the Company’s Joint Prepackaged Chapter 11 Plan of Reorganization (as amended, the “Plan”), which was confirmed by the U.S. Bankruptcy Court for the District of Delaware on December 13, 2018, and has emerged from chapter 11 bankruptcy.

Dixie Electric, LLC, dba Expanse Energy Solutions, and certain of its affiliates (“Dixie” or the “Company”) today announced that it has successfully completed its financial restructuring pursuant to the Company’s Joint Prepackaged Chapter 11 Plan of Reorganization (as amended, the “Plan”), which was confirmed by the U.S. Bankruptcy Court for the District of Delaware on December 13, 2018, and has emerged from chapter 11 bankruptcy. The Company maintained its operations in the ordinary course throughout its brief, in-court restructuring process, with employees, suppliers, vendors and other key counterparties largely unaffected by the Company’s restructuring.

Upon effectiveness of the Plan, the Company fully extinguished approximately $300 million in principal amount of outstanding debt. In addition, the Company entered into a new exit credit facility of $30 million provided by members of an ad hoc group (the “Ad Hoc Group”) of existing secured lenders (the “Secured Lenders”), the proceeds of which will be used to fund ongoing working capital and business operations. By deleveraging its balance sheet, the Company has emerged from the restructuring process with enhanced financial flexibility, a fortified balance sheet and runway to execute on its long-term growth initiatives and operational business plan.

The efficient completion of the reorganization process was made possible by the support of the Secured Lenders. Under the Plan, the Secured Lenders exchanged their claims under the Company’s extinguished pre-petition secured credit facility for 98.25 percent of the equity in the newly-restructured Company, subject to dilution by a management incentive plan.

Throughout the reorganization process, the Company was able to operate its business in the ordinary course, focusing on delivering innovative and high-quality service to its clients. With a deleveraged balance sheet, the Company is well-positioned to focus on operational excellence, growth and expansion.

The Company will retain its management team, which remains committed to being a leader in the oil, gas and industrial services sectors in the nation’s most prolific energy producing regions.

Dixie was represented by Simpson Thacher & Bartlett LLP and Young Conaway Stargatt & Taylor, LLP, as legal co-counsels, and its financial advisor was PJT Partners LP. The Ad Hoc Group was represented by Davis Polk & Wardwell LLP and Morris, Nichols, Arsht & Tunnell LLP, as legal co-counsels, and Ankura Consulting Group LLC as financial advisor.

About Dixie
Dixie, dba Expanse Energy Solutions, is an innovative leader in the oil, gas and industrial services sectors, facilitating upstream, midstream and downstream operations in the nation’s most prolific energy producing regions. The Company’s skilled field employees have one of the best safety records in the industry as they install electrical infrastructure, provide materials and automation services critical in the life of oil fields. Dixie excels in providing local service capabilities, efficient supply chain management and around-the-clock maintenance capabilities to the oil, gas and power industries.

For more information about Dixie, please contact:
(832) 399-0078 or Trey.Barnes@expanseenergy.com

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Linden Emerson