Exhibit 99.1
THURSDAY MAY 25, 7:12 PM EASTERN TIME
COMPANY PRESS RELEASE
SOURCE: Boots & Coots International Well Control Inc.
ITS SUPPLY CORPORATION FILES FOR CHAPTER XI BANKRUPTCY PROTECTION
HOUSTON, May 25 /PRNewswire/ -- Boots & Coots International Well Control, Inc.
(Amex: WEL - news), the leading provider of global prevention and emergency
response well control solutions to the oil and gas industry, reported today that
one of its wholly-owned subsidiaries, ITS Supply Corporation (``ITS''), had
filed for protection under Chapter XI of the U.S. Bankruptcy Code in Corpus
Christi, Texas on May 18, 2000. The filing of the ITS Chapter XI bankruptcy
proceedings does not affect the operations of the Company or any of its other
subsidiaries. There exists one subordinated partial guaranty, issued by the
Company, of amounts owing to a portion of one ITS trade creditor. The $1,500,000
guaranty is subordinated to payment in full of all senior debt of the Company in
accordance with the terms of the subordinated guaranty. The Company does not
presently anticipate paying any portion of that subordinated guaranty. Boots &
Coots has elected to focus its capabilities and resources, in the current
reviving oil and gas sector, on those elements that are core to its business.
ITS expects to file a plan with the court for reorganization in accordance with
time schedules provided for by the bankruptcy code. ITS's operating subsidiaries
are not included in the Chapter XI filing. Operations of these subsidiaries are
not expected to be impacted by the filing.
For the year ended December 31, 1999 (unaudited), ITS had revenues of
approximately $11,300,000 and a net loss of approximately <$1,800,000>. ITS had
losses of approximately <$230,000> for the year ended December 31, 1998. ITS's
outsource purchasing and logistics business unit was severely impacted by the
sharp drop in oil and gas prices and significantly fewer new international
projects in the third quarter 1999, which resulted in reduced demand for ITS's
ongoing services. As of the filing date, ITS had total liabilities of
approximately $7,800,000.
Boots & Coots has continued to keep its lenders informed of the circumstances
which resulted in the Chapter XI filing by ITS. The Company is currently in the
process of completing the documentation required for the acquisition by Foothill
Capital Corporation of the existing senior credit indebtedness presently led by
Comerica Bank-Texas, as previously announced.
Forward-looking statements contained in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Investors are cautioned that all forward-looking statements involve assumptions
that, although believed to be reasonable at this date, are subject to
uncertainties, which may cause actual results to differ from anticipated
results.
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