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Pacific Drilling’s successful completion of balance-sheet restructuring and chapter 11 emergence

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Pacific Drilling SA said that along with each of its debtor affiliates, it has emerged from the Chapter 11 process, signaling the successful completion of the company’s balance-sheet restructuring.

The implementation of the Modified First Amended Joint Plan of Reorganization of Pacific Drilling SA and its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code, confirmed by the United States Bankruptcy Court for the Southern District of Texas, has also been completed.

Pursuant to the plan, all of the company’s outstanding common shares were deemed to have no value and will receive no recovery. In accordance with the restructuring transactions contemplated by the plan, upon emergence the company has a new parent company, Pacific Drilling Company LLC, a Cayman Islands limited liability company, the equity of which is owned by former creditors of the company and its debtor affiliates.

“We are pleased to reach completion of this process. Having now emerged from Chapter 11 with a fully de-levered balance sheet, we are well positioned to continue to deliver world class drilling services with our fleet of 6th and 7th generation drillships,” said Bernie G Wolford , chief executive officer of the reorganized company.

After emergence, the reorganized company now operates with a substantially de-levered capital structure, due to the elimination of more than $1 billion of funded debt obligations pursuant to the plan. The reorganized company has approximately $100 million in cash on hand, and access to an undrawn $80 million senior secured delayed draw term loan exit facility, to support its ongoing operations.

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