Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Superior Energy Services, Inc. Merger; Termination On December 23, 2019, the Company announced that it had entered into an Agreement and Plan of Merger dated as of December 18, 2019 (as amended, supplemented, and modified from time to time, the “Merger Agreement”) with Superior Energy Services, Inc., a Delaware corporation (“Superior”), New NAM, Inc., a Delaware corporation and a newly formed, wholly owned subsidiary of Superior which, prior to completion of the mergers, would hold Superior’s North American Business and its associated assets and liabilities (“NAM”), Arita Energy, Inc. (formerly known as Spieth Newco, Inc.), a Delaware corporation and a newly formed, wholly owned subsidiary of the Company (“Arita”), Spieth Merger Sub, Inc., a Delaware corporation and a newly formed, wholly owned subsidiary of Arita (“NAM Merger Sub”), and Fowler Merger Sub, Inc., a Delaware corporation and a newly formed, wholly owned subsidiary of Arita (“Forbes Merger Sub”), pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, it was intended that NAM Merger Sub would merge with and into NAM (the “NAM Merger”) and Forbes Merger Sub would merge with and into the Company (the “Forbes Merger,” and together with the NAM Merger, the “Mergers”), with each of NAM and the Company continuing as surviving entities and wholly owned subsidiaries of Arita. Effective immediately prior to the record date for the special meeting of the Company’s stockholders, Ascribe Capital LLC and its affiliates (collectively, “Ascribe”), and Solace Capital Partners, L.P. and its affiliates (collectively, “Solace”) agreed to exchange a portion of the PIK Notes, including all accrued interest thereon, then held by them in exchange for shares of the Company’s common stock (the “Forbes PIK Exchange”). Immediately prior to the effective time of the Mergers, the balance of the aggregate principal amount of PIK Notes then held by Ascribe and Solace would be contributed to Arita in exchange for shares of Arita Class A common stock (the “Forbes PIK Contribution”). Prior to the effective time of the Mergers, the Company was required to cause the aggregate principal amount of the PIK Notes outstanding at such time that is not held by Ascribe or Solace to convert into shares of the Company’s common stock in accordance with the Indenture governing the PIK Notes (the “Forbes PIK Conversion”). Immediately prior to the effective time of the Mergers, the Company would have been required to cause the aggregate principal amount outstanding under its Term Loan Agreement, together with accrued interest thereon, then held by Ascribe and Solace as of immediately prior to the closing of the Mergers to be exchanged for approximately $30 million in newly issued mandatory convertible preferred shares of Arita (the “Preferred Stock”). The Preferred Stock would be entitled to cash dividends at a rate of 5% per annum, payable semi-annually, and would be subject to mandatory conversion on the third anniversary of the closing of the Mergers into a number of shares of Arita Class A common stock equal to 20% of the outstanding shares of Arita common stock outstanding at the closing of the Mergers on a fully diluted basis. The Merger Agreement, and the transactions contemplated thereby, were approved by the Company’s Board of Directors, the special committee of the Company’s Board of Directors, and the Superior Board of Directors. In connection with the Merger Agreement, certain stockholders of the Company, including Ascribe and Solace, entered into voting and support agreements. The Company stockholders that are party to the voting agreements committed to vote the shares of the Company’s common stock they beneficially own in favor of the adoption of the Merger Agreement and any other matters necessary for the consummation of the transaction contemplated by the Merger Agreement, including the Mergers. Following the Forbes PIK Exchange, as described below, Ascribe and Solace held the ability to approve the Merger Agreement and the Forbes Merger without the vote of any other stockholder. The Mergers were subject to the satisfaction or waiver of customary closing conditions, including approval of the Merger Agreement by the Company’s stockholders and satisfaction of certain financing conditions. As of the date of this filing, Superior and NAM have been unable to satisfy the financing condition set forth in the Merger Agreement, which is a condition precedent to the closing of the Mergers. On June 1, 2020, the Company received a written notice of termination of the Merger Agreement from Superior and NAM. As a result, the Merger Agreement has been terminated, effective as of June 1, 2020. Neither the Company, Superior nor NAM is obligated to pay a termination fee in connection with the termination of the Merger Agreement. Forbes PIK Exchange On April 16, 2020, the Company, Ascribe, and Solace consummated the Forbes PIK Exchange, pursuant to which Ascribe exchanged approximately $0.13 million aggregate principal amount of PIK Notes in exchange for 963,116 shares of the Company’s common stock, and Solace exchanged approximately $0.09 million aggregate principal amount of PIK Notes in exchange for 709,253 shares of the Company’s common stock. Coronavirus Aid, Relief, and Economic Security (CARES) Act On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). The CARES Act, among other things, includes the Paycheck Protection Program (“PPP”) as well as provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to net interest deduction limitations, increased limitations on qualified charitable contributions, and technical corrections to tax depreciation methods for qualified improved property. In May 2020, the Company began deferring the employer portion of social security payments and the Company received proceeds from an unsecured loan in the amount of approximately $10 million pursuant to the PPP as described below. The Company continues to examine any additional changes and interpretations related to the CARES Act. Currently, the Company is unable to determine the full impact that the CARES Act will have on its financial condition, results of operations, or liquidity. Entry into PPP Loan and Amendments to Revolving Loan Agreement and Term Loan Agreement On May 15, 2020, FES LLC obtained an unsecured $10 million loan (the “PPP Loan”) under the Paycheck Protection Program from Texas Champion Bank. The Paycheck Protection Program was established under the recently congressionally-approved CARES Act and is administered by the U.S. Small Business Administration. The application for these funds requires the Company to, in good faith, certify that the current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. This certification further requires the Company to take into account the Company's current business activity and its ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. In accordance with the requirements of the CARES Act, the Company intends to use the proceeds of the PPP Loan for payroll costs, rent or utility costs and other permitted uses. The PPP Loan has a two year maturity and accrues interest at a rate of 1% per annum. Payments under the PPP Loan are deferred for the first six months of its term. Under the terms of the CARES Act, loan recipients can apply for and be granted forgiveness for all or a portion of loans granted under the Paycheck Protection Program. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds for payroll costs and mortgage, rent and utility costs. No assurance is provided that the Company will qualify to apply for and obtain forgiveness of the PPP Loan in whole or in part. On May 15, 2020, the Company, FES LLC and certain of its subsidiaries entered into the Fourth Amendment to Credit Agreement, with the Revolver Agent and the lenders party thereto, which amended the Revolving Loan Agreement in order to permit the incurrence of the PPP Loan, and to effect the other matters set forth therein. On May 15, 2020, the Company, FES LLC and certain of its subsidiaries entered into Amendment No. 4 to Loan and Security Agreement, with the Term Loan Agent and the lenders party thereto, which amended the Term Loan Agreement in order to permit the incurrence of the PPP Loan, and to effect the other matters set forth therein. June 2020 Revolving Loan Amendment and Term Loan Amendment On June 26, 2020, the Company, FES LLC and certain of its subsidiaries, as borrowers, entered into the Fifth Amendment and Waiver to Credit Agreement (the “June 2020 Revolving Loan Amendment”) with the lenders party thereto and the Revolver Agent. Pursuant to the June 2020 Revolving Loan Amendment, the commitments under the Revolving Credit Agreement were reduced from $27.5 million to $9.0 million, with such commitments solely available to issue letters of credit. In addition, the maturity date of the Revolving Credit Agreement was shortened to December 31, 2020 from January 12, 2021. Pursuant to the June 2020 Revolving Loan Amendment, the Revolving Loan Agreement Temporary Waiver provided under the March 2020 Revolving Loan Amendment was made permanent, and certain defaults which have occurred or which may occur under the Revolving Loan Agreement and the Term Loan Agreement, including with respect to certain unpaid taxes, were waived. Furthermore, the Revolving Loan Agreement was amended pursuant to the June 2020 Revolving Loan Amendment to exclude the obligations under the PIK Notes from any cross-default to the Revolving Loan Agreement. In addition, a notice of default delivered by the Revolver Agent to the Company on June 9, 2020 was withdrawn. The June 2020 Revolving Loan Amendment requires the Company to provide cash collateral to secure the obligations under the Revolving Loan Agreement, in amounts equal to (i) $2,689,000 on or prior the effective date of the June 2020 Revolving Loan Amendment, (ii) $1,000,000 on or prior to June 30, 2020 and (iii) $1,200,000 (or such other amount as is required to fully cash collateralize all outstanding letter of credit obligations and bank product obligations) on or prior to July 31, 2020. From and after such time that all letter of credit obligations and bank product obligations under the Revolving Loan Agreement are fully cash collateralized, certain covenants and events of default under the Revolving Loan Agreement will cease to apply, and the collateral securing the obligations under the Revolving Loan Agreement (other than cash collateral) will be released by the Revolver Agent. On June 29, 2020, the Company, FES LLC, as borrower, and certain of its subsidiaries entered into Amendment No. 5 and Waiver to Loan and Security Agreement (the “June 2020 Term Loan Amendment”), with the Term Loan Agent and the lenders party thereto, which amended the Term Loan Agreement to exclude the obligations under the PIK Notes from any cross-default to the Term Loan Agreement, and provided a waiver of defaults which occurred with respect to certain unpaid taxes. In connection with the June 2020 Term Loan Amendment, the Company modified certain representations with respect to solvency to assume the ability to refinance or otherwise satisfy the obligations under the Term Loan Agreement on or prior to the maturity thereof. PIK Note Default On June 29, 2020, the Company notified certain PIK Note holders of a possible default due to property tax penalties that have been accrued and are outstanding. As of June 30, 2020, the Company owes approximately $1.5M in unpaid property taxes, plus approximately $0.6 million in associated penalties. The Company is currently in discussions with holders of a majority in aggregate principal amount of the PIK Notes with respect to such possible default. As of the date of this filing, no notice of default has been communicated to the Company from the holders of PIK Notes or the trustee. If the PIK Note holders deem these conditions to be an event of default and such conditions are not cured or waived within 60 days after receipt of any written notice to the Company, the principal and accrued and unpaid interest on all the outstanding PIK Notes may become immediately due and payable.

Forbes Energy Services Ltd. 10-Q