Note 17 - Subsequent Events

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Subsequent Events [Text Block]

Note

17

– Subsequent Events

Emergence from Chapter

11

Proceeding

On

January

6,

2017,

the Predecessor substantially consummated the Restructuring Plan and emerged from the Chapter

11

Proceeding. See Note

2

- Chapter

11

Proceeding and Emergence for additional information regarding confirmation of the Restructuring Plan and emergence from the Chapter

11

bankruptcy.

New Credit Facility

On

January

6,

2017,

in connection with the emergence from bankruptcy, the Company entered into the New Credit Facility with PNC Bank, National Association. See Note

5

- Debt and Capital Lease Obligations for additional information about the New Credit Facility.

Warrant Agreement

On the Plan Effective Date, by operation of the Restructuring Plan, the Company entered into a warrant agreement (the “Warrant Agreement”) with American Stock Transfer & Trust Company, LLC, which provides for the Company’s issuance of up to

1,180,083

New Warrants to former holders of common equity interests in the Predecessor on the Plan Effective Date and up to

2,360,166

New Warrants to the Debtors' general unsecured creditors after the Plan Effective Date.

The New Warrants are exercisable from the date of issuance, or the Plan Effective Date, until

5:00

p.m., New York City time, on

January

6,

2024.

The New Warrants are initially exercisable for

one

share of the Company’s common stock, par value

$0.01

per share, per New Warrant at an initial exercise price of

$27.95

per New Warrant (the “Exercise Price”).

Cancellation of indebtedness

In accordance with the Restructuring Plan, on the Plan Effective Date, the obligations of the Predecessor with respect to the Original

Credit Agreement indebtedness were canceled and discharged (collectively, the “Old C&J Debt”). The obligations of the Predecessor under the Old C&J Debt were canceled in exchange for

39,999,997

shares of common stock

issued to certain holders of claims arising under the Original

Credit Agreement.

Issuance of New Common Stock

On the Plan Effective Date, pursuant to the terms of the Restructuring Plan, the Successor issued an aggregate of

55,463,903

shares of its common stock to the Holders of Allowed Secured Lender Claims (as defined in the Restructuring

Plan), including

15,463,906

shares of common stock issued in connection with the Rights Offering.

Management Incentive Plan

In accordance with the terms of the Restructuring Plan, effective

January

6,

2017,

a total of

8,046,021

shares of common stock

were authorized,

approved and reserved

for future

issuance under that certain

2017

C&J Energy Services, Inc.

Management Incentive Plan (the "MIP").

On

January

31,

2017,

the board of directors (the "Board") of the Company and the Compensation Committee of the Board

approved grants of

12,603

shares of restricted stock under the MIP

to the Company’s non-employee directors. The

awards granted to the non-employee directors shall vest in full on the

first

anniversary of the date of grant, subject to each director’s continued service.

On

February

5,

2017,

the Board approved grants of restricted stock and nonqualified stock options under the MIP

to certain of the Company’s executive officers totaling

369,246

shares of restricted stock and

255,570

nonqualified stock options. The

awards granted to the

executive officers effective as of

February

5,

2017,

shall vest according to the following schedule: (i)

34%

vests immediately on the date of grant, (ii)

22%

vests on the

first

anniversary of the date of grant, (iii)

22%

vests on the

second

anniversary of the date of grant and (iv)

22%

vests on the

third

anniversary of the date of grant, in each case, subject to each executive officer’s continued employment.

Effective as of

February

5

,

2017,

482,281

shares of restricted stock were granted

under the MIP

to certain of the Company's non-executive employees. These

awards granted to the

non-executive employees shall vest according to the following schedule: (i)

34%

vests immediately on the date of grant, (ii)

22%

vests on the

first

anniversary of the date of grant, (iii)

22%

vests on the

second

anniversary of the date of grant and (iv)

22%

vests on the

third

anniversary of the date of grant, in each case, subject to each non-executive employees' continued employment.