Basic Energy Services (OTCMKTS:BASX) Stock Slumps After the Chapter 11 News
Filing of Chapter 11 can often come as a death blow to a company’s stock and that is what seemed to have happened with the Basic Energy Services (OTCMKTS:BASX) stock on Tuesday.
The Basic Energy stock was in the middle of a strong downward spiral as investors headed for the exits after it filed for Chapter 11 bankruptcy protection and ended the day with losses of as much as 65%. However, that is not all. There are some other developments as well, that investors ought to be aware of before making up their minds about the Basic Energy stock.
In another development, Berry Corp announced yesterday that it signed a ‘stalking horse’ asset purchase deal with Basic Energy after the latter filed for Chapter 11. As per the provisions of the deal signed between the two companies, Berry Corp is going to acquire Basic Energy’s well services, water logistics and remedial services businesses for a total consideration of as much as $27 million.
However, that is not all. It also emerged that Basic Energy’s water production assets at Agua Libre Midstream are also the targets of Select Energy Services. These are all key developments which might have a long term bearing on the Basic Energy stock.
