UTEX Industries Exits Chapter 11 With $ 700 Million Less Debt, Additional Funding, and Dramatically Strengthened Balance Sheet

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HOUSTON, Dec 3 2020 / PRNewswire / – UTEX Industries, Inc. (“UTEX” or the “Company”) today announced that it has exited its Chapter 11 “prepackaged” expedited cases. This milestone marks the final milestone in the completion of the financial restructuring of UTEX, which succeeded in reducing the Company’s funded debt by approximately $ 700 million and provided $ 42.5 million in a new financing to the Company. The Company emerges from bankruptcy as a private company owned by its lenders prior to the restructuring. The Company’s previous holdings were canceled as part of the restructuring.

Mike Balas, Chairman and CEO said: “The restructuring of Utex provides us with a flexible capital structure and liquidity to be competitive and grow in the current business environment. I am grateful to our dedicated employees who continued to work hard throughout the restructuring. This transaction will position us and our partners for success in the years to come. ”

Jeff A. Cullman will join UTEX as Chairman of the Board of Directors. Mr. Cullman is the former president of Worldwide Hydraulics Group, a business group of Parker Hannifin Corporation. Other members or the Board include Mike Balas, Jim brown, vice chairman of the board of directors of PetroStar Services and former executive of Haliburton, James chapman, Advisory Director of SkyWorks Capital, LLC, and Piotr Galitzine, former Chairman and CEO of TMK IPSCO.

In the context of financial restructuring, Houlihan Lokey served as financial advisor and investment banker, AlixPartners served as restructuring advisor and Weil, Gotshal & Manges LLP served as legal advisor to UTEX.

About UTEX

UTEX is a market-leading manufacturing company headquartered in Houston, Texas. UTEX operates manufacturing, distribution and technical sales facilities in United States and abroad and has around 500 employees. UTEX’s innovative and personalized products support a diverse clientele, including the oil and gas, industrial, mining and hydraulic markets.

Nothing in this press release constitutes a solicitation of the holders of any indebtedness or participation of UTEX with respect to the matters contemplated by the Agreement or an offer to buy or sell, or a solicitation of an offer to buy or sell. purchase or sale of any UTEX title. All such securities which may be offered in connection with the transactions contemplated by the Agreement have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in United States the lack of registration or an applicable exemption from the registration requirements of the Securities Act.

Certain statements contained in this press release constitute forward-looking statements. All statements other than statements of historical fact are, or may be considered, forward-looking statements. Forward-looking statements include, without limitation, any statement which may project, indicate or imply future results, events, performance or achievements, and may contain or be identified by the words “believe”, “expect”, “Expect to be”, “anticipate”, “contemplate”, “plan”, “intend”, “foresee”, “foresee”, “continue”, “can”, “continue, will continue”, “could” or other similar expressions used to identify a forward-looking statement. Readers are cautioned that all forward-looking statements contained herein are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Significant assumptions and other significant factors that could cause the results to vary materially. actual results and include a decrease in drilling activity, as well as commodity price volatility for crude oil and natural gas, competition, government regulation or other actions, management’s ability to execute its plans to achieve its objectives and other risks inherent in our business. Readers are cautioned that forward-looking statements are valid as of the date hereof, are based on our current beliefs, intentions and expectations, and are not guarantees of future performance. Actual results or developments may differ materially from expectations expressed or implied in forward-looking statements, and UTEX does not undertake to update such statements.

SOURCE UTEX Industries, Inc.

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