Form 4: Nine Energy Service Director's Shares Wiped Out Post-Bankruptcy

Nine Energy Service director Scott Schwinger's 132,107 common shares were cancelled for no consideration following the company's Chapter 11 emergence.

Summary

• Scott Schwinger, a Director of Nine Energy Service, Inc. (NINE), reported a change in beneficial ownership.
• On March 4, 2026, 132,107 shares of common stock were disposed of.
• The shares were cancelled for no consideration.
• This cancellation was directly related to Nine Energy Service, Inc.'s emergence from Chapter 11 bankruptcy, where all common stock shares were cancelled.

Sentiment

Score: 2

Explanation: StockSavvy.ai views this as a highly negative event for pre-bankruptcy common shareholders, as their equity was cancelled for no value, reflecting the severe financial distress that led to Chapter 11.

Negatives

• Scott Schwinger's 132,107 shares of common stock were cancelled.
• The cancellation was for no consideration ($0).
• This indicates a complete loss of value for existing common shareholders as part of the Chapter 11 bankruptcy emergence.

Risks

• The company recently emerged from Chapter 11 bankruptcy, which typically involves significant financial restructuring and the elimination of existing equity.
• Existing common shareholders lost their investment as shares were cancelled for no consideration.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that the cancellation of common stock for no consideration is a standard outcome for existing equity holders when a company emerges from Chapter 11 bankruptcy, as new equity is typically issued to creditors. This event reflects the severe financial distress the company experienced.

Comparison to Industry Standards

• The cancellation of existing common equity for no consideration is a common outcome in Chapter 11 bankruptcy reorganizations, similar to cases like Seadrill Limited's 2021 restructuring or McDermott International's 2020 bankruptcy, where pre-petition equity was wiped out.
• This contrasts with solvent restructurings or mergers where shareholders typically receive some form of consideration or new equity.

Legal Proceedings

• Nine Energy Service, Inc. emerged from Chapter 11 bankruptcy, leading to the cancellation of all existing common stock.

Stakeholder Impact

• Shareholders (pre-bankruptcy): Experienced a complete loss of investment as common shares were cancelled for no consideration.
• Company (Nine Energy Service, Inc.): The emergence from Chapter 11 bankruptcy implies a restructured balance sheet and a fresh start, though at the expense of prior equity holders.

Key Dates

Keywords

Nine Energy Service, NINE, Form 4, Beneficial Ownership, Scott Schwinger, Chapter 11, Bankruptcy, Share Cancellation, Equity Restructuring