SITUATION:
After several years of 100% annual growth, Dreco Energy Services, Ltd. (NYSE: DREAF), a $250 million builder and servicer of oil rigs, saw its backlog drop from $250 million to $50 million when demand dropped precipitously in the U.S. oil market.

ACTION:
As Dreco's Chairman and CEO, Jerry Goldress restructured the Company in Chapter 11 Bankruptcy. Jerry's plan included expanding Dreco's rig building operations into the international markets, while growing service operations in the U.S. Working capital was meticulously monitored to buy time for the domestic market for oil production equipment to rebound.

RESULT:
Dreco weathered the downturn in the market and, in 1999, the Company was sold for $55 per share to National-Oil Well, Inc. (NYSE: NOI). Dreco's stock had been trading at twenty-five cents per share when it initially emerged from bankruptcy.