Nine Energy shares plummet 46.77% premarket after filing prepackaged Chapter 11 restructuring.

Nine Energy Service plunged 46.77% in premarket trading following its announcement of a voluntary prepackaged Chapter 11 restructuring filing. The company disclosed plans to eliminate $320 million in senior debt and secure $125 million in new financing to stabilize operations, signaling severe financial distress. Despite assurances of uninterrupted service and full vendor payments, the filing—commonly associated with corporate distress—triggered a sharp selloff as investors reacted to the heightened risk of insolvency proceedings. The restructuring, supported by lenders, aims to reduce annual interest expenses by $40 million and restructure capital over 45 days, but the immediate market response underscored skepticism about the company’s near-term viability.