US Bankruptcy Court has approved the Paragon Offshore’s consensual plan of reorganization and restructuring and the company is planning for its emergence from Chapter 11 in early July. According to the restructuring plan, the existing 2.4 billion USD debt of the offshore provider will be eliminated and the secured creditors and unsecured bondholders will receive equity in a new reorganized parent company. US Bankruptcy Court overruled all objections, including those raised by an unofficial committee of equity holders. Following the approval of restructuring, the offshore provider will need to prepare the legal entity and complete all the procedures.
“We are extremely gratified to have received this ruling. Thanks are due to our employees, our board of directors, our creditors, and the professionals retained by Paragon and its creditors”, said the CEO of Paragon Offshore, Dean E. Taylor. “Without their hard work and dedication, we could not have achieved this result, which allows us to emerge from the shadow of bankruptcy and return to our core business of delivering Safe, Reliable, and Efficient services to our customers”, added he.
Paragon Offshore is a leading provider of standard specification offshore drilling units serving the oil and gas industry. Its fleet consists of 32 jackups and six floaters (four drillships and two semisubmersibles). The company operates in significant hydrocarbon-producing geographies throughout the world, including Mexico, Brazil, the North Sea, West Africa, the Middle East, India and Southeast Asia.