Nine Energy Bankruptcy Plan Approved to Slash $320 Million Debt

Oil field vendor Nine Energy Service Inc. received court approval for a plan to reduce its debt after filing for Chapter 11 bankruptcy a month ago.

Judge Christopher M. Lopez of the US Bankruptcy Court for the Southern District of Texas approved Nine Energy’s prepackaged plan at a Wednesday hearing. The plan stems from a pre-bankruptcy recapitalization agreement with creditors that, the company said, would eliminate about $320 million in senior secured notes and cut annual interest expense by roughly $40 million.

Lopez overruled an objection from the Department of Justice’s bankruptcy monitor, the US Trustee, which opposed the plan’s ...