Covia’s Bankruptcy Plan Approved with $135 Million in Exit Loan

Frack sand producer Covia Holdings Corp. is poised to shed $735 million of debt and emerge from bankruptcy by the end of the year after resolving objections to its reorganization.

Covia’s Chapter 11 plan, confirmed Monday, also will allow the company to get $135 million in exit financing, Andrew Eich, Covia’s chief financial officer, said at a hearing in the U.S. Bankruptcy Court for the Southern District of Texas.

Senior lenders will take controlling ownership of the Independence, Ohio-based company after it emerges from bankruptcy.

The company is expected to be worth between $900 million and $1.15 billion when the ...