Nine Energy Service shares fall 60.09% premarket as company files prepackaged Chapter 11 restructuring amid debt reduction and DIP financing.

Nine Energy Service plummeted 60.09% in premarket trading following its announcement of a voluntary prepackaged Chapter 11 filing to restructure $320 million in senior secured debt. The company secured $125 million in debtor-in-possession financing and a plan to convert debt to equity, with lenders supporting a 45-day emergence timeline. While the restructuring aims to reduce annual interest expenses by $40 million and ensure uninterrupted operations, the bankruptcy filing signaled acute financial distress, triggering a sharp selloff. The move reflects immediate liquidity pressures and equity dilution risks, overshadowing longer-term benefits of a streamlined capital structure. Market participants interpreted the filing as a bearish catalyst, with the stock’s collapse reflecting concerns over solvency and investor confidence erosion.