The U.S. Southern District of Texas bankruptcy court has approved Valaris plc (OTC: VALPQ) Chapter 11 pre-arranged reorganization plan, Valaris reported on Wednesday.
The plan will allow Valaris to eliminate $ 7.1 billion in existing debt and provide the offshore drilling contractor with a capital injection of $ 520 million through the issuance of a guaranteed $ 550 million note due in 2028, the company said in a written statement emailed to Rigzone.
“I am delighted that we have received strong support for the company’s amended plan,” said Tom Burke, President and CEO of Valaris. “This is an important step as it paves the way for Valaris to exit Chapter 11 early in the second quarter.”
In addition to obtaining court approval, Valaris noted that his plan had the support of about 80% of the company’s unsecured noteholders, with bank lenders accounting for 100% of its claims on its credit facilities. credit and about 81% of its voting shareholders.
“The overwhelming support from our noteholders and bank lenders shows their confidence in our strategy for the future and our strength as a company,” Burke continued. “This achievement would not have been possible without the continued dedication and loyalty of our employees, customers, suppliers and other partners. “
Valaris also said it has entered into an agreement with Daewoo Shipbuilding and Marine Engineering Co., Ltd. (DSME) (KRK: 042660) to amend its two contracts for the construction of new drilling vessels. The changes extend the delivery date of each drilling vessel until December 31, 2023, while giving Valaris the option to take early delivery or terminate contracts without recourse, Valaris explained. Additionally, the drilling contractor noted that estimated final payments for the Valaris DS-13 and Valaris DS-13 ships will be approximately $ 119 million and $ 218 million, respectively.
“We look forward to emerging quickly with our strengthened capital structure which, combined with our fleet of drills and high quality staff, positions the company well in an ever challenging offshore drilling market,” Burke concluded.
Valaris filed chapter 11 last august.
To contact the author, send an email to [email protected] A dedicated website administered by Stretto, Valaris’ claims agent, presents court records and additional information on court-supervised proceedings.