Pacific Drilling made progress in connection with its Chapter 11 proceedings. On August 23, 2018, the bankruptcy court approved the company’s entry into a commitment letter with a third-party financial institution relating to the $700 million first lien notes offering contemplated by the plan of reorganization.
In addition, on August 30, 2018, the bankruptcy court approved the backstop commitment by certain members of the company’s ad hoc group of creditors and the commitment premium payable to such commitment parties, in each case as agreed by the parties in the commitment agreement relating to the $300 million second lien notes offering contemplated by the plan of reorganization. However, the remainder of the second lien commitment agreement and related documents referenced therein remain subject to the ongoing review of the bankruptcy court. The bankruptcy court also approved the company’s implementation of the 2018 key employee incentive plan.
According to court documents filed on September 1, the company reached agreement on the terms of a fully consensual Chapter 11 plan, which provides for, among other things, a $1.5 billion recapitalization of the debtors’ capital structure, which recapitalization is fully committed by Credit Suisse Securities and the ad hoc group of secured lenders.
These commitments have positioned the debtors to emerge from Chapter 11 before the one-year anniversary of the filing.
Based in Houston and Luxembourg, Pacific Drilling is a high-specification, deepwater drilling contractor.
