A Fort Worth-based oil services company that has filed two bankruptcy filings in five years has suggested it could cut the jobs of about 1,400 of its employees who work in three states.
Basic Energy Services, Inc. wrote in a notice that 120 of the employees whose jobs could be cut work at its Burnett Plaza office tower headquarters. About 375 of the employees work elsewhere in Texas, in Big Spring, Andrews, Denver City, and Kenedy. The largest share of the company’s cuts could come from Bakersfield, Calif., Where around 775 jobs could be lost. The jobs of about 75 employees in Artesia, New Mexico, are also in jeopardy.
The mass termination notice is required by federal Workforce Adjustment and Retraining Act, and was issued by the Texas Workforce Commission. Layoffs can occur in mid-October or late October.
On August 17, Basic filed a voluntary Chapter 11 petition with the US South District Bankruptcy Court of Texas. The company wrote in the WARN Act notice that it has entered into asset purchase agreements with Berry Corporation, Axis Energy Services Holdings, LLC and Select Energy Services, Inc.
Basic wrote that she “did not know if the sales of her businesses would be closed, or if a buyer of the businesses of the business would make an offer of employment to some or all of the employees of the business after the closing of the business. a sales transaction.
“If the company does not enter into such sales transactions, the company currently expects it to be forced to cease operations and make staff reductions.”
In 2012, Basic moved its headquarters from Midland to downtown Fort Worth, where it leased approximately 50,000 square feet of office space.
At the time, the company considered itself the third largest oil and gas well maintenance company in the United States. It was founded in 1992 and went public in 2005.
Almost half of Basic’s business at the time of the head office move was from completion services, including hydraulic fracturing and well cementing. Water transport and disposal as well as well reconditioning and maintenance each accounted for about 25%, and contract drilling provided the remainder of the income.
Basic completed a restructuring and recapitalization plan in December 2016 and exited Chapter 11 bankruptcy protection after the company reached an agreement with creditors on a pre-defined reorganization to reduce its debt.
Basic divided between several investors about $ 800 million in unsecured debt, including accrued interest, as part of the restructuring. It also eliminated about $ 60 million in annual cash interest and raised $ 125 million in new capital, according to the company.