A Calgary based fracking company, which often conducted work in the west central area, has filed for insolvency in Canada and has filed for a Chapter 15 petition in the United States. Calfrac Well Services Corp. proceeded with these filings this week after missing an unsecured interest payment in June.

Reports state that the missed payment required Calfrac to pay over $18 million to noteholders, of which a 30 day grace period was provided, however, that was set to expire this past Wednesday – which prompted the filings.

Calfrac is now looking to restructure their debt obligations and reduce their annual debt interest obligations by $36 million. According to filings secured creditors are not expected to be impacted.

The company stated that the filings are due to not only the steep decline in demand due to COVID-19, but also the price wars that ensued earlier this year, both of which have resulted in a massive decline in demand for their fracking services.