Nine Energy Service, Inc. (NINE) entered Chapter 11 bankruptcy on February 1, 2026, and the New York Stock Exchange announced on February 2 that it would begin delisting proceedings against the company. The NYSE staff determined that NINE no longer satisfies Section 802.01D of the NYSE Listed Company Manual, which requires a minimum market capitalization and share price. Trading in the company’s common stock was suspended immediately, and the NYSE will seek SEC approval to delist the shares once all procedural steps, including any appeal, are completed.
The delisting is part of a pre‑packaged Chapter 11 plan that NINE filed on February 1. The plan calls for the cancellation of all outstanding common shares, effectively wiping out equity holders, and the elimination of approximately $320 million of senior secured notes. The restructuring is expected to reduce annual interest expense by roughly $40 million and convert noteholders into holders of 100 % of the reorganized company’s equity. The plan also includes a $68 million debt‑repayment schedule that will be funded by the company’s remaining cash and a modest equity infusion from strategic partners.
Nine Energy Service’s financial position has been strained for several years. As of the bankruptcy filing, the company carried $388 million in funded debt obligations and reported a 9.1 % decline in revenue to $554 million in 2024, accompanied by a $41 million net loss—an increase of 27.5 % from 2023. Gross margin fell to 11.5 % and net margin to –7.2 %. These figures illustrate the company’s high leverage, shrinking drilling programs, and the lingering impact of its 2018 acquisition of Magnum Oil Tools, which added significant debt without commensurate revenue growth.
The bankruptcy filing follows a series of listing compliance notices. In October 2024, NINE received a notice for non‑compliance with Section 802.01B due to market capitalization and stockholders’ equity falling below $50 million. A second notice in April 2025 cited non‑compliance with Section 802.01C because the average closing price of its common stock had remained below $1.00 for 30 consecutive trading days. These repeated violations underscore the company’s deteriorating liquidity and governance profile, prompting the NYSE’s decisive action.
Ann Fox, NINE’s president and CEO, said the Chapter 11 filing is a “strategic step to position the business for long‑term success and ensure an appropriate capital structure.” She emphasized that the restructuring will allow the company to focus on supplying completion services to unconventional oil and gas developers while shedding debt that has become unsustainable in a low‑price environment.
Market reaction to the delisting announcement was swift. S&P Global Ratings downgraded all of NINE’s ratings to ‘D’ from ‘CCC‑’ and subsequently withdrew them, reflecting the company’s inability to meet listing standards and its projected loss of equity value. The immediate suspension of trading and the cancellation of common shares mean that existing shareholders will receive no proceeds from the reorganization, effectively erasing their investment.
For investors, the delisting and bankruptcy filing signal a complete loss of liquidity for equity holders and a shift of the company’s capital structure toward debt holders and new equity investors in the reorganized entity. The pre‑packaged plan offers a 45‑day turnaround, but the cancellation of common stock and the heavy debt burden suggest that the company’s future will be focused on debt servicing and operational turnaround rather than shareholder returns.
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