Pacific Drilling Announces Filing of Plan of Reorganization Based on Proposal by Ad Hoc Group of Creditors
Pacific Drilling S.A. (OTC:PACDQ) (“Pacific Drilling” or the “Company”) today announced that it has filed a plan of reorganization in its Chapter 11 proceedings (the “Plan”) based on the proposal presented to the Company’s Board of Directors by an ad hoc group of its secured creditors (collectively, the “Ad Hoc Group”).
Pursuant to the Plan, the Company expects to raise $1.5 billion of new capital comprised of $1.0 billion in a combination of first and second lien secured notes and $500 million of equity. The Plan proposes to provide holders of the Company’s existing 2017 senior secured notes, 2020 senior secured notes and senior secured term loan B with (a) their share of 30.9% of the Company’s pro forma equity, such share being governed by a settlement reached among supporters of the Plan and (b) rights to purchase their share of 51.2% of the Company’s pro forma equity, such share also being governed by a settlement reached among supporters of the Plan, pursuant to a $400 million rights offering which will be backstopped by the Ad Hoc Group. As consideration for its backstop of the equity rights offering, the Ad Hoc Group will receive 5.1% of the Company’s pro forma equity. The Ad Hoc Group will also commit to purchase 12.8% of the pro forma equity in the Company through a $100 million equity private placement. In addition, the Company’s senior secured credit facility and revolving credit facility would be paid in full. Under the Plan, existing holders of Pacific Drilling common stock would receive no recovery.
The Plan was developed over the course of comprehensive mediation discussions between the Company’s Board of Directors and its stakeholders. The Plan will strengthen the Company’s balance sheet by reducing its leverage and delivering a substantial amount of new capital. Upon consummation of the Plan, Pacific Drilling’s cash position will be significantly enhanced, and the Company will be in a much stronger financial position to take advantage of its dedicated, high-specification deepwater drillship fleet in anticipation of an improving market for offshore drilling services.
The Plan comprises a balance sheet restructuring that is intended not to affect the Company's operations. Additionally, upon consummation of the Plan, the Company expects to pay all unsecured trade claims in full. Consummation of the Plan is subject to bankruptcy court approval, completion of the anticipated financing transactions and other customary conditions.
The Company’s majority shareholder, Quantum Pacific (Gibraltar) Limited, certain lenders under the Company’s senior secured credit facility and a third-party investor (collectively, the “QP Group”) may elect to file a proposed order on the QP Group’s oral motion, made during the Company’s July 26, 2018, bankruptcy court hearing, to terminate the Company’s exclusive right to file a plan of reorganization, attaching its own Chapter 11 plan. The bankruptcy court will timely rule on the QP Group’s oral motion such that, in the event such motion is granted, the QP Group plan will have sufficient time to be solicited on the same timeline as the Plan.
Additional information about our Chapter 11 proceedings can be found (i) in the Company’s Form 6-K filed along with this announcement, (ii) in the Company’s Form 20-F containing our annual report for the period ended December 31, 2017 as filed with the SEC, (iii) other documents available on the Company’s website at www.pacificdrilling.com/investor-relations/sec-filings, and www.pacificdrilling.com/restructuring and (iv) via the Company’s restructuring information line at +1 866-396-3566 (Toll Free) or +1 646-795-6175 (International Number).
About Pacific Drilling
With its best-in-class drillships and highly experienced team, Pacific Drilling is committed to becoming the industry’s preferred high-specification, floating-rig drilling contractor. Pacific Drilling’s fleet of seven drillships represents one of the youngest and most technologically advanced fleets in the world. Pacific Drilling has its principal offices in Luxembourg and Houston. For more information about Pacific Drilling, including our current Fleet Status, please visit our website at www.pacificdrilling.com.
Certain statements and information contained in this news release constitute “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are generally identifiable by the use of words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “our ability to,” “plan,” “potential,” “projected,” “should,” “will,” “would,” or other similar words, which are generally not historical in nature. The forward-looking statements speak only as of the date hereof, and we undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. Our forward-looking statements express our current expectations or forecasts of possible future results or events, including our future financial and operational performance and cash balances; revenue efficiency levels; market outlook; forecasts of trends, future client contract opportunities, contract dayrates; our business strategies and plans and objectives of management; estimated duration of client contracts; backlog; expected capital expenditures; projected costs and savings; the potential impact of our Chapter 11 proceedings on our future operations and ability to finance our business; projected costs and expenses in connection with potential reorganization plans; and our ability to emerge from our Chapter 11 proceedings and continue as a going concern. Although we believe that the assumptions and expectations reflected in our forward-looking statements are reasonable and made in good faith, these statements are not guarantees, and actual future results may differ materially due to a variety of factors. These statements are subject to a number of risks and uncertainties, many of which are beyond our control. Important factors that could cause actual results to differ materially from our expectations include: the global oil and gas market and its impact on demand for our services; the offshore drilling market, including reduced capital expenditures by our clients; changes in worldwide oil and gas supply and demand; rig availability and supply and demand for high specification drillships and other drilling rigs competing with our fleet; costs related to stacking of rigs; our ability to enter into and negotiate favorable terms for new drilling contracts or extensions; our substantial level of indebtedness; possible cancellation, renegotiation, termination or suspension of drilling contracts as a result of mechanical difficulties, performance, market changes or other reasons; our ability to continue as a going concern in the long term; our ability to obtain Bankruptcy Court approval with respect to motions or other requests made to the Bankruptcy Court in our Chapter 11 proceedings, including maintaining strategic control as debtor in-possession; our ability to confirm and consummate our plan of reorganization; the effects of our Chapter 11 proceedings on our operations and agreements, including our relationships with employees, regulatory authorities, customers, suppliers, banks and other financing sources, insurance companies and other third parties; the effects of our Chapter 11 proceedings on our Company and on the interests of various constituents, including holders of our common shares and debt instruments; Bankruptcy Court rulings in our Chapter 11 proceedings as well as the outcome of all other pending litigation and arbitration matters and the outcome of our Chapter 11 proceedings in general; the length of time that we will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the proceedings; risks associated with third-party motions in our Chapter 11 proceedings, which may interfere with our ability to confirm and consummate a plan of reorganization and restructuring generally; increased advisory costs to complete our plan of reorganization; our ability to access adequate debtor-in-possession financing or use cash collateral; the potential adverse effects of our Chapter 11 proceedings on our liquidity, results of operations, or business prospects; increased administrative and legal costs related to our Chapter 11 proceedings and other litigation and the inherent risks involved in a bankruptcy process; the cost, availability and access to capital and financial markets, including the ability to secure new financing after emerging from our Chapter 11 proceedings; and the other risk factors described in our 2017 Annual Report on Form 20-F and our Current Reports on Form 6-K. These documents are available through our website at www.pacificdrilling.com or through the SEC’s website at www.sec.gov.
Om Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
Morinaga Milk Study Suggests Infant-Type Human-Residential Bifidobacteria May Benefit Infant Health by Improving Digestion of Peptides in Milk and Grains23.10.2018 18:00 | Pressemelding
Scientists at Morinaga Milk Industry Co., Ltd. (TOKYO:2264) have long theorized that Human-Residential Bifidobacteria (HRB) are superior to non-Human-Residential Bifidobacteria (non-HRB) in promoting good health outcomes. The results of a new study strengthen the evidence for this theory, showing that infant-type HRB may be able to break down incompletely digested peptides in the infants’ gastrointestinal systems and thus contribute to their overall health. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181023005015/en/ Fig 1. Food-derived opioid peptides are potential risk factors for human health (Graphic: Business Wire) Human-Residential Bifidobacteria for Humans Morinaga Milk has been conducting research on bifidobacteria for many years, and studies over the past decades have shown that bifidobacteria play a vital role in various aspects of human health. There are two major groups of bifidobacteria: Human-Residential Bif
myPOS Founder Christo Georgiev Announces Two Upcoming myPOS Stores in Barcelona and Paris23.10.2018 16:22 | Pressemelding
Christo Georgiev, fintech entrepreneur and founder of myPOS, has confirmed his intention to open two new flagship stores in major European cities by the end of the year. The opening is part of an initiative to bring the product closer to potential customers, giving them a hands-on experience and a live demonstration of what myPOS has to offer. The two new stores will be opened in Barcelona, Spain and Paris, France – two of the most important markets for myPOS. “Our Spanish and French customers have always placed a tremendous amount of trust in us, and we in turn have worked hard to justify it,” Georgiev says. “Opening physical locations in Barcelona and Paris is an extension of that relationship. It’s important to test a product with your own hands before you choose to trust it, and if that’s true for TVs and phones why can’t it apply to POS terminals?” The Barcelona store will open as soon as November, followed shortly by the Paris one before the end of the year. myPOS has already ope
Christo Georgiev Announces the Arrival of myPOS AppMarket23.10.2018 16:11 | Pressemelding
myPOS Europe Ltd., a leading card payments provider to small and medium-sized businesses in Europe, is introducing its own AppMarket – an innovative software platform for business applications that allows myPOS clients to find, download and use various apps for improved business performance. The development of myPOS AppMarket was driven by the necessity to meet the ever-changing business needs dictated by customer demand and behaviour. While the payment terminals myPOS offers come with a large number of innovative payments features, there are other business needs which remain uncaptured at the moment. myPOS founder Mr. Christo Georgiev says: “Individual businesses need a tailored approach when it comes to accepting payments for their services. Offering a fully customizable and complete omni-channel payments solution, which empowers businesses to stay agile, has always been in our foresight. Tapping into the familiarity of our everyday favourite device – the smartphone, pushed us even f
CNIM Presents a Rapid Version of The LCAT® Shore-to-Shore Featuring Unique Operational Capabilities23.10.2018 15:45 | Pressemelding
The L-CAT® Shore-to-shore presented by CNIM at Euronaval 2018 delivers a major increase in performance for amphibious missions. The L-CAT® Shore-to-shore has been upgrated since its launch 2 years ago. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20181023005869/en/ CNIM's amphibious craft, the L-CAT® Shore-to-shore (Photo: CNIM) The L-CAT® Shore-to-shore is now the only vessel with the ability to transport 80 tonnes at 25 knots in conditions up to sea state 5, land in shallow water (~1m) and accommodate 42 passengers for long distance trips. Highly maneuvrable, the L-CAT® Shore-to-shore provides exceptional operational flexibility for amphibious assaults and humanitarian operations, without compromising between speed and payload. Its wide loading platform (145 m²), ability to travel up to 800 nautical miles when loaded, self-defence and communication capabilities are tactical advantages for the projection of Forces. Its spee
Exterior Plus, a Portfolio Company of H.I.G. Capital, Acquires Impactmedia23.10.2018 13:03 | Pressemelding
Exterior Plus, the out-of-home advertising platform of H.I.G. Capital, announces the acquisition of Impactmedia (the “Company”), a leading shopping mall advertising company, with over 630 million viewers in high-traffic premium locations throughout Spain. This is a major step forward in Exterior Plus’s consolidation strategy, as it aims to become the Spanish leader in out-of-home advertising with a unique, diversified and highly-competitive product portfolio, reaching very diverse audiences at a national level. Impactmedia is an experienced leader in shopping mall advertising, offering digital advertising as well as special marketing actions. The Company operates in over 90 shopping centers where it has more than 1,200 digital displays. The acquisition allows Exterior Plus to gain a strong presence near points of sale, a key value driver for advertisers. H.I.G. Capital acquired and established the Exterior Plus group in December 2015. The group currently markets more than 25,000 advert
Visa Brings a Simpler, Safer Experience to Digital Payments23.10.2018 13:00 | Pressemelding
Visa (NYSE: V) today announced a continued commitment to reducing friction and improving security in digital commerce by reiterating support of the draft EMV® Secure Remote Commerce (SRC) Specification. The draft EMV SRC Specification provides a foundation for digital transactions that gives consumers, merchants and issuers a single digital point-of-sale, resulting in a consistent, convenient and secure way to pay. EMVCo has spent the last year gathering feedback from across the payment ecosystem on the specification. Visa now encourages merchants, issuers, acquirer gateways and other interested participants to provide feedback and comment during a 45-day public comment window. Once complete, EMVCo will publish the final specification. Shoppers are increasingly migrating to websites, mobile phones and voice-activated devices, but their buying experiences are full of friction because they are required to manually enter payment details. With SRC, consumers’ digital buying experiences wil