Pacific Drilling Announces Settlement in Mediation Between Quantum Pacific and Ad Hoc Group of Creditors
Pacific Drilling S.A. (OTC:PACDQ) (“Pacific Drilling” or the “Company”) today announced that its plan of reorganization filed on July 31, 2018 (the “Plan”), based on a proposal presented to the Company’s Board of Directors by an ad hoc group of its secured creditors (collectively, the “Ad Hoc Group”), now has the full support of the Company’s majority shareholder, Quantum Pacific (Gibraltar) Limited (“QP”). The Plan was already supported by all of the Company’s major creditor interests. With QP’s participation, the Company expects a smooth plan confirmation process and a quick emergence from its Chapter 11 proceedings.
Pacific Drilling CEO Paul Reese commented, “The agreement reached by QP and the Ad Hoc Group delivers the final piece needed to make the Company’s Plan a consensual one that has the support of the Company’s major stakeholders. The agreement should allow the Plan to move forward efficiently and expeditiously through the implementation and confirmation process.”
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 through a rights offering and a private placement. Under the Plan, existing holders of Pacific Drilling common shares would receive no recovery.
Under the agreement reached in successful mediation proceedings, QP and its investment partners will commit to purchase $100 million of the first lien secured notes and $100 million of the second lien secured notes to be issued pursuant to the third-party syndicated financing contemplated by the Plan and will commit to purchase $50 million of the new equity in the Company through a private placement.
Cyril Ducau, the Company’s Chairman of the Board, stated, “After over a year of negotiations, we are happy to see a breakthrough in the talks between the Quantum Pacific Group and the Ad Hoc Group. With significant new capital commitments from both groups and the support from all stakeholders, Pacific Drilling is now on track to exit Chapter 11 with one of the strongest balance sheets in the industry and ample liquidity to see it through the long-expected recovery of the offshore drilling industry.”
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.
Additionally, upon consummation of the Plan, the Company expects to pay all unsecured trade claims in full. Consummation of the Plan is subject to execution and delivery of definitive agreements, Bankruptcy Court approval, completion of the anticipated financing transactions and other customary conditions. Given the consensus now achieved among all of the Company’s key stakeholders, it is expected that the remainder of the Chapter 11 proceedings can be concluded quickly.
N. Scott Fine, Vice Chairman of the Pacific Drilling Board of Directors, further commented, “We owe a debt of gratitude to all of our advisors and especially our mediator, Judge James Peck (ret), for their tireless work in helping us reach what the Company has strived for from the beginning of its Chapter 11 process, a consensual plan.”
The Company was advised through this process by AlixPartners LLP as Financial Advisor, Evercore as Investment Bankers and Togut, Segal & Segal LLP as bankruptcy counsel.
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) in the Company’s Forms 6-K filed subsequent to the Form 20-F, (iv) in other documents available on the Company’s website at www.pacificdrilling.com/investor-relations/sec-filings, and www.pacificdrilling.com/restructuring, and (v) 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, deepwater 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,” “may,” “plan,” “predict,” “project,” “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; our ability to complete the restructuring transactions contemplated by our plan of reorganization; projected costs and expenses in connection with our plan of reorganization; 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 and are based on a number of judgments and assumptions as of the date such statements are made about future events, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected or implied by us in such statements due to a variety of factors, including if one or more of these risks or uncertainties materialize, or if our underlying assumptions prove incorrect.
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 ability to successfully negotiate and consummate definitive contracts and satisfy other customary conditions with respect to letters of intent and letters of award that we receive for our drillships; 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 execute our business plan and 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 in accordance with the terms of the Plan and the settlement; risks attendant to the bankruptcy process including the effects of our Chapter 11 proceedings on our operations and agreements, including our relationships with employees, regulatory authorities, clients, 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; the potential adverse effects of our Chapter 11 proceedings on our liquidity, results of operations, or business prospects; the outcome of Bankruptcy Court rulings in our Chapter 11 proceedings as well as all other pending litigation and arbitration matters; 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; our ability to access adequate debtor-in-possession financing or use cash collateral; risks associated with third-party motions in our Chapter 11 proceedings, which may interfere with our ability to timely confirm and consummate our plan of reorganization and restructuring generally; increased advisory costs including administrative and legal costs to complete our plan of reorganization and other litigation; the risk that our plan of reorganization may not be accepted or confirmed, in which case there can be no assurance that our Chapter 11 proceedings will continue rather than be converted to Chapter 7 liquidation cases or that any alternative plan of reorganization would be on terms as favorable to holders of claims and interests as the terms of our Plan; 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
HCL 2030 Ecosystem Platform to Explore Societal Implications of Emerging Technology at the World Economic Forum21.1.2019 07:26 | Pressemelding
HCL Technologies (HCL), a leading global technology company and the World Economic Forum’s Strategic Partner, today announced its largest presence to date at the side-lines of World Economic Forum’s Annual Meeting in Davos scheduled from 21st January 2019 to 25th January 2019. The company will host a three-day event in a special Pavilion that will feature a technology showcase, thought-leadership programs, as well as a number of high-level networking and social events throughout the tenure of the conference. The overarching theme of the HCL and Fast Company programs will explore how humanity’s relationship with technology will evolve through the next decade of rapid innovation. HCL has partnered with Fast Company to develop a thought-leadership track that includes three panel discussion breakfasts. As part of the theme of Human-Machine Harmony, HCL is launching the HCL 2030 Platform, together with its ecosystem of partners and stakeholders, that will conduct in-depth explorations and d
Former Commander of the Estonian Defence Forces, Gen Riho Terras Joins Milrem Robotics’ Team21.1.2019 07:00 | Pressemelding
Gen (ret) Riho Terras who served as the Commander of the Estonian Defence Forces for 7 years and retired in December 2018 joins the team of one of the leading unmanned warfare systems developers Milrem Robotics to head up its Defence Division. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190120005004/en/ The CEO and owner of Milrem Robotics Kuldar Vaarsi (left) and the new Director of the Defence Division Gen (ret) Riho Terras. (Photo: Business Wire) General Terras’ main responsibilities will be establishing Milrem Robotics’ international business development and program support teams, leading the process of gaining a strong foothold in the defence market and bringing end-user specific know-how to company’s strategic R&D activities. “General Terras’ strong background and experience put him in a good position to grow the company’s international presence and build up our teams worldwide,” explained Kuldar Väärsi, CEO and own
MagicStay Launches a New Loyalty Program21.1.2019 07:00 | Pressemelding
MagicStay, the first apartment booking site dedicated to business travel and mobility, is launching its new Magic Loyalty Card program to reward traveler loyalty. MagicStay is the first French alternative accommodation booking site, created to meet the requirements of business travel (duty of care, date protection, travel policy…) and available for all those who wish to travel peacefully. The platform provides over 200 000 studios, apartments and houses in more than 90 countries. Collect points for every euro spent: When booking on MagicStay, for every euro spent, customers will receive one loyalty point. Put forward to simplify and personalize customer experience, the program allows travelers to spend the collected points as they wish: discount on future reservations, gifts or donations to charitable organizations. Each customer will be able to consult their loyalty points on their personal space on www.magicstay.com and transform them at any time. This loyalty program is intended for
inRiver Expands Executive Bench and Growth Initiatives for 201921.1.2019 07:00 | Pressemelding
inRiver, the leading provider of SaaS-based product information management (PIM) solutions, today elevated veteran sales executive Jimmy Jeppsson Bäckström to chief revenue officer, and promoted Johan Eriksson to chief financial officer, rounding out the executive team additions that included Thor Johnson, chief executive officer, Eric Waller, chief technology officer and executive vice president of product, Maria Bolmstedt, vice president of services, and Steve Gershik, chief marketing officer in 2018. The past year yielded tremendous growth for inRiver as the organization continued to strengthen its presence in North America and expand operations in Europe with 40% increase in new customer logos and more than 50% increase in recurring revenue. New customers in retail and branded manufacturing within the fashion, construction, accessories, medical devices, food and beverage, and furniture verticals have grown the inRiver community to over 1,500 brands and 500 customers globally. “Cust
US FDA Approves ONTRUZANT® (trastuzumab-dttb), Samsung Bioepis’ First Oncology Medicine in the United States20.1.2019 23:38 | Pressemelding
Samsung Bioepis Co., Ltd. today announced that the U.S. Food and Drug Administration (FDA) has approved ONTRUZANT® (trastuzumab-dttb), a biosimilar referencing HERCEPTIN® 1 (trastuzumab), across all eligible indications, namely adjuvant treatment of HER2-overexpressing breast cancer, metastatic breast cancer and metastatic gastric cancer or gastroesophageal junction adenocarcinoma in patients who have not received prior treatment for metastatic disease. Please see Boxed Warnings and Important Safety Information for ONTRUZANT® below. ONTRUZANT® is Samsung Bioepis’ first oncology biosimilar to receive FDA approval, and will be marketed and distributed in the United States (US) by Merck, which is known as MSD outside of the US and Canada. “For many cancer patients in the US, battling cancer has not only been a health issue, but a considerable financial burden brought on by cancer treatment. Biosimilars are intended to be lower cost, high-quality treatment options that have the potential t
More4Apps to Join the Cloud20.1.2019 22:53 | Pressemelding
More4Apps, the NZ-based software integration specialist known for its Excel based Oracle EBS integration tools, has confirmed it will be building product for Cloud ERP. “We're overwhelmed by the number of customers asking for our solutions to be migrated to the new ERP system, and that’s driven our strategic commitment to developing Cloud-based data entry tools,” said Bruce Doig, co-founder and Head of Innovation at More4Apps. “Already we have a large team working closely with a well known US fast food restaurant chain to deliver several loaders integrated with Oracle ERP Cloud.” As a Gold Partner with Oracle, More4Apps is well positioned to develop a range of integration tools for the new platform, with an intimate knowledge of the existing EBS and a close working relationship with a customer with whom they are collaborating to develop data loaders for the new SaaS platform. And whilst the capabilities of Cloud ERP are yet to be fully proven, More4Apps are confident there will be a pl