Nine Energy Service shares fall 50.50% premarket after filing prepackaged Chapter 11 restructuring.

Nine Energy Service Inc. plunged 50.50% in premarket trading after announcing a voluntary prepackaged Chapter 11 filing to restructure its capital. The company revealed plans to eliminate $320 million in senior debt, reduce annual interest expenses by $40 million, and secure $125 million in debtor-in-possession financing. While the restructuring aims to strengthen long-term financial health, the bankruptcy filing signals immediate distress, triggering a sharp sell-off as investors reacted to the perceived risk of insolvency. The move, supported by lenders and designed to ensure uninterrupted operations, underscores the company’s urgent need to address debt obligations, aligning with the stock’s bearish premarket performance.