AlixPartners acted as restructuring advisor to Pacific Drilling in the company’s emergence from Chapter 11.
Pacific Drilling completed its balance-sheet restructuring and the implementation of its joint plan of reorganization, which was confirmed by the United States Bankruptcy Court for the Southern District of Texas on Dec. 21.
In the company’s Chapter 11 process, Greenhill & Co. acted as financial advisor, Latham & Watkins and Jones Walker served as legal counsel, Houlihan Lokey acted as financial advisor, and Akin Gump Strauss Hauer & Feld acted as legal advisor to an ad hoc group of noteholders.
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, a Cayman Islands limited liability company. The equity of this company is owned by former creditors of the Pacific Drilling 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,” Bernie G. Wolford, CEO of the reorganized company, said.
Pacific Drilling eliminated more than $1 billion of funded debt obligations pursuant to the plan. The new 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.
Pacific Drilling is an offshore ultra-deepwater drilling company.
