Sidley is representing client Ares Capital Corporation (“Ares”), as administrative agent under a prepetition term loan facility and as administrative agent under a DIP loan facility, in connection with the Chapter 11 bankruptcy filing of Vista Proppants and Logistics, LLC and its subsidiaries (collectively, “Vista”). Vista commenced voluntary cases under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Texas (the “Bankruptcy Court”) on Wednesday, June 10, 2020. Vista is a leading in-basin provider of frac sand solutions for oil and gas well completions in the Permian Basin and Eagle Ford Shale. The first day hearings seeking customary relief were held before Judge Edward L. Morris in the Bankruptcy Court on June 11, 2020.
Vista has stated that it will continue with limited day-to-day operations during the reorganization proceedings. The company has received commitments from the prepetition term lenders to provide US$11 million in debtor-in-possession financing that will help fund the company’s limited operations and bankruptcy costs. Ares is administrative agent under the US$370 million prepetition senior secured term loan facility and administrative agent under the DIP facility.
The Sidley lawyers representing Ares in connection with Vista’s prepetition term loan facility and restructuring include Global Finance lawyers Herschel Hamner (Houston), Matthew Walker (Houston), Priscilla Arthus (Houston) and Femi Aborisade (Houston); Restructuring lawyers Dennis Twomey (Chicago), Charles Persons (Dallas), Julia Philips Roth (Los Angeles) and Juliana Hoffman (Dallas); and M&A lawyers Marc Rose (Dallas), Jeremy Pettit (Dallas) and Jack Zeringue (Dallas); and Tax lawyer Zackary Pullin (Houston).