On June 9, 2015, Boomerang Tube, LLC and two affiliates, BTCSP, LLC and BT Financing, Inc., filed chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware. The cases has been assigned to The Honorable Mary F. Walrath and are docketed as case no. 15-11247.
Boomerang Tube identifies itself as "a leading manufacturer of welded Oil Country Tubular Goods (OCTG) in the United States," according to the Declaration of Kevin Nystrom filed in support of the petitions and first-day motions.
Boomerang's corporate offices are located in Chesterfield, Missouri and its manufacturing facilities are located in Liberty, Texas. According to Mr. Nystrom's declaration, the debtors employed 341 full-time and 2 part-time employees as of June 5, 2015. Mr. Nystrom notes that as of March 31, 2015, the debtors reported total assets of approximately $299 million and total liabilties of $461 million. For the year ending December 2014, the Debtors' operations generated gross sales of $501 million and suffered net losses of approximately $17.8 million.
Mr. Nystrom points to the downturn in the oil and gas industry as directly impacting the Debtors' sales and overall financial condition, resulting in a decrease in revenues of 62% in the first quarter of 2015 as compared to the fourth quarter of 2014.
According to Mr. Nystrom, the debtors have been attempting to negotiate a consensual plan and have entered into a Plan Support Agreement with certain of its lenders. Mr. Nystrom's declaration state that the Plan Support Agreement contemplates a restructuring transaction that will materially delever the Debtors' balance sheet and provide significant liquidity to the business.