The bankruptcy and creditors’ rights team at Gold Weems represented the Creditors Committee in the Chapter 11 case of Francis Drilling Fluids, Ltd., d/b/a FDF Energy Services, in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. FDF, an energy services provider, was negatively affected by the sustained downturn in the oil and gas industry. It entered Chapter 11 to effectuate the sale of the business, selling substantially all of its assets in December 2018.
Working on behalf of the committee, Gold Weems obtained the elimination of all preference liability for unsecured trade creditors, where the trade creditors would have otherwise had to pay to settle claims, and those proceeds would largely have been allocated to secured creditors on their deficiency claims. The firm also obtained payment for administrative trade claims, inclusive of claims related to goods provided within 20 days prior to the bankruptcy filing.
Bradley L. Drell
of the firm was lead counsel for the Creditors Committee. “Given how insolvent Francis Drilling became, we obtained a great result for trade creditors by preventing what would have been a transfer of cash from Main Street to Wall Street on account of a bad business deal,” Drell said. “Rather than fighting to obtain some small dividend or tip from the trade creditors, the committee was more concerned about being sued for preferences on the back end. I am glad we were able to deliver the result the committee wanted.”