Hi-Crush Inc. announced it has entered into a Restructuring Support Agreement with certain note holders (the ‘Noteholders’), collectively owning or controlling approximately 94% of the aggregate outstanding amount of the Company's 9.5% Senior Unsecured Notes due 2026 (the ‘2026 Notes’). To implement the terms of the Agreement, the Company also announced that it has voluntarily filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. The terms of the Agreement provide for a comprehensive restructuring of the Company's balance sheet (the ‘Prearranged Plan’) to be implemented through the commencement of Chapter 11 cases. The Prearranged Plan, if implemented, will result in the elimination of approximately $450 million of unsecured note debt and an ongoing reduction in annual interest expense of greater than $43 million. The Prearranged Plan also contemplates the equitization of certain material general unsecured claims against the Company. The Prearranged Plan provides the Company significant additional liquidity and minimizes operational disruptions. During the Chapter 11 proceedings, the Company will continue to operate its business in the normal course without disruption to its vendors, customers, or employees, and will have sufficient liquidity to meet its financial obligations during the restructuring process. Through certain motions filed concurrent with the Chapter 11 cases (the ‘First Day Motions’), Hi-Crush estimates that substantially all trade vendors who will have an ongoing business relationship with the Company will be paid for goods and services in the normal course of business without interruption. Working with the Noteholders, the Company expects to complete the Chapter 11 process within 60 to 90 days. In addition, the Company has received commitments from its various pre-petition lenders for $65 million in Debtor-In-Possession and exit financing (the ‘DIP/Exit Facilities’), subject to typical and customary terms, which will be used to meet working capital needs during the pendency of the case and long-term capital needs post emergence. The DIP/Exit Facilities consist of, (i) a $25 million Senior Secured Asset Based Loan from its pre-petition secured lenders that will convert to an exit facility upon the Company's emergence from the Chapter 11 Cases, and (ii) a $40 million DIP loan from the participating Noteholders, scheduled to be refinanced to $40 million of new Senior Secured Convertible Notes (the ‘New Secured Convertible Notes’) upon emergence from the Chapter 11 Cases.