According to the Wall Street Journal, oil services company Basic Energy Services Inc. is about to file for bankruptcy protection for a second time, the infamous Chapter 22. Details are sparse but more will be forthcoming once the filing is published.
The only BDC with exposure is non-traded BDC Guggenheim Credit Income Fund, which apparently did not get the memo about the risks of energy lending. Total exposure at cost is $2.2mn and the FMV $0.8mn. The first lien debt involved has been on non accrual for two quarters, so the impact on income should be nil and on market value only minimal, given the big discount already in place. Exposure dates back to IIIQ 2018.
In our database, Basic Energy remains rated as non-performing, or CCR 5.