CJ 2017 Annual Report

(g) Represents the reorganization adjustments to retained deficit (in thousands): Gain on settlement of liabilities subject to compromise $ 666,399 Accrual of success fee (13,435) Adjustment for other expenses (438) Net impact to retained deficit $ 652,526 Fresh Start adjustments (h) Represents the Fresh Start accounting adjustments based upon the individual asset fair values. (i) Represents the accelerated recognition of deferred gain balances of the Predecessor. (j) Represents the tax effect of the above Fresh Start accounting adjustments. (k) Represents the adjustment to Predecessor additional paid-in capital as a result of the elimination of Predecessor retained deficit and accumulated other comprehensive loss in accordance with ASC 852 . (l) Represents the income statement impacts of the revaluation loss of $354.0 million, after tax, and the elimination of the resulting retained deficit balance in accordance with ASC 852. C&J ENERGY SERVICES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 91 Note 4 - Debt Debt consisted of the following as of December 31, 2017 and 2016 (in thousands): Successor Predecessor As of December 31, 2017 2016 Revolving Credit Facility $ — $ 284,400 Five-Year Term Loans — 569,250 Seven-Year Term Loans — 480,150 Total debt — 1,333,800 Less: liabilities subject to compromise — (1,333,800) Long-term debt and capital lease obligations $ — $ — DIP Facility $ — $ 25,000 On July 20, 2016, the Debtors filed Bankruptcy Petitions in the Bankruptcy Court seeking relief under Chapter 11 of the Bankruptcy Code under the caption “ In re: CJ Holding Co., et al., Case No. 16-33590 .” The filing of the Bankruptcy Petitions constituted an event of default with respect to the Original Credit Agreement. As a result, the Company’s pre-petition secured indebtedness under the Original Credit Agreement became immediately due and payable and any efforts to enforce such payment obligations were automatically stayed as a result of the Chapter 11 Proceeding. As of December 31, 2016, $1.3 billion of debt under the Company's Credit Agreement was classified as liabilities subject to compromise. Additional information regarding the Chapter 11 Proceeding is included in Note 2 - Chapter 11 Proceeding and Emergence. Amended Credit Facility On January 6, 2017, in connection with the emergence from bankruptcy, the Company entered into the New Credit Facility, and subsequently on May 4, 2017, entered into the Amended Credit Facility.