CEO who profited as Hi-Crush spiraled departs as company exits bankruptcy

(Reuters) - Robert Rasmus, the founder of oilfield services firm Hi-Crush Inc who profited as the business spiraled into bankruptcy, lost his positions at the firm in a recent restructuring, according to company postings.

Rasmus was replaced as CEO last month by Dirk Hallen, former chief executive of oilfield firm Pronghorn Logistics, and was replaced as board chairman by Colin Leonard, a partner at energy investor Clearlake Capital Group. Rasmus no longer appears on a company website that lists its directors.

Rasmus and other executives at the frack sand supplier collected tens of millions of dollars from sales of assets to Hi-Crush, from stock purchases made just ahead of a share buyback, and from bonus issued days before the company filed for Chapter 11 bankruptcy in July this year.

The bankruptcy restructuring wiped out the value of its shares and debt holders received 9.3 million new shares. The restructuring eliminated $450 million in existing debt. A new board was appointed as part of its restructuring.

The company did not reply to requests for information after normal business hours, and Rasmus could not immediately be reached for comment.

Rasmus had previously said in a written statement the firm’s board has always complied with “appropriate guidance, process, good corporate governance and practices, and securities and legal regulations.”

This year’s decline in oil prices and demand has led 97 North American oil and gas and service companies to declare bankruptcy, according to law firm Haynes and Boone.

Reporting by Gary McWilliams