Emerge Energy Services LP (NYSE:EMES) Files An 8-K Bankruptcy or Receivership

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Emerge Energy Services LP (NYSE:EMES) Files An 8-K Bankruptcy or Receivership

Emerge Energy Services LP (NYSE:EMES) Files An 8-K Bankruptcy or Receivership
Item 1.03. Bankruptcy or Receivership.

On July 15, 2019, Emerge Energy Services LP (the “Partnership”), along with certain of the Partnership’s subsidiaries (collectively, the “Debtors”), filed voluntary petitions for relief (collectively, the “Petitions” and, the cases commenced thereby, the “Chapter 11 Cases”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). The Debtors have filed a motion with the Bankruptcy Court seeking to jointly administer the Chapter 11 Cases under the caption “In re: Emerge Energy Services LP., et al.” The Debtors will continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court.

The Chapter 11 Cases were filed in order to effect the Debtors’ joint plan of reorganization (as amended from time to time, the “Plan”). Copies of the Plan and further information about the Chapter 11 Cases can be found at http://www.kccllc.net/EmergeEnergy.

Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

The commencement of the Chapter 11 Cases constitutes an event of default that accelerated the Partnership’s obligations under the following debt instruments (collectively, the “Debt Documents”). Any efforts to enforce such payment obligations under the Debt Documents are automatically stayed as a result of the filing of the Petitions and the holders’ rights of enforcement in respect of the Debt Documents are subject to the applicable provisions of the Bankruptcy Code.

· Second Amended and Restated Revolving Credit and Security Agreement, dated as of January 5, 2018, by and among the Partnership, as parent guarantor, Emerge Energy Services Operating LLC, Superior Silica Sands LLC and certain of their subsidiaries, as borrowers, HPS Investment Partners, LLC, as administrative and collateral agent and the lenders party thereto from time to time.

· Second Lien Note Purchase Agreement, dated as of January 5, 2018, by and among the Partnership, as parent guarantor, Emerge Energy Services Operating LLC, Superior Silica Sands LLC and certain of their subsidiaries, as borrowers, HPS Investment Partners, LLC, as notes and collateral agent and the noteholder party thereto from time to time.

About Emerge Energy Services LP (NYSE:EMES)

Emerge Energy Services LP owns, operates, acquires and develops a portfolio of energy service assets. The Company’s segments include Sand segment, Fuel segment and Corporate. The Company’s Sand segment consists of the production and sale of various grades of industrial sand primarily used in the extraction of oil and natural gas, as well as the production of building products and foundry materials. Its Fuel segment operates approximately two terminals and over two transmix processing facilities that are located in the Dallas-Fort Worth, Texas area and Birmingham, Alabama. In addition to refining transmix, the Fuel segment sells a suite of complementary fuel products and services, including third-party terminaling services, certain reclamation services and blending of renewable fuels. The Company’s other services include blending of renewable fuels into petroleum products, and the manufacture of biodiesel at its Birmingham facility.