The US Bankruptcy Court in the District of Delaware rejected the request to exit Chapter 11 by rig operator Paragon Offshore. According to the court, the company required the removal of too much cash during the current downturn of the sector. The restructuring plan was not accepted and considered as not feasible, but the judge noted that his ruling did not preclude the company from a restructuring and publishing a new plan. The rig operator Paragon Offshore is considering the further actions after the reject of the restructuring plan, but denied any comments at the current stage.
Paragon Offshore had filed for Chapter 11 bankruptcy protection in February with almost 2.6 billion USD in long-term debts. The company was hit by the plunge in oil prices and crisis in the offshore sector, which lead to withdrawing of many clients from the drilling operations and cancellation of contracts.
Paragon Offshore is a global provider of drilling rigs, operating a fleet of 34 jackups, including two high specification heavy duty/harsh environment jackups, four drillships, and two semisubmersibles. The company’s primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world.