Hornbeck Offshore Services emerged from Chapter 11 pursuant to its joint prepackaged Chapter 11 plan of reorganization, which implements the previously announced restructuring support agreement negotiated with the company’s lenders and note holders.
“The quick completion of our reorganization and emergence from Chapter 11 is a significant achievement, particularly given the currently very challenging economic environment,” Todd M. Hornbeck, chairman, president and CEO of Hornbeck Offshore Services, said. “I want to thank our employees, customers, vendors, lenders and note holders for their steadfast support, which allowed us to maintain normal operations during this process. We will now go forward with a stronger financial foundation and are well positioned for long-term success.”
Pursuant to the plan of reorganization, all general unsecured creditors, including Hornbeck Offshore Services’ trade creditors and vendors, were paid in full in the ordinary course of business. In addition, the company’s debtor-in-possession financing was converted into a new senior secured exit facility and all of the company’s pre-petition secured loans and unsecured senior notes were cancelled in exchange for new secured debt, new equity and new equity rights (or cash, if applicable) as of Sept. 4. Lastly, all of the company’s pre-petition equity interests were extinguished as of Sept. 4.
Hornbeck Offshore Services also closed on the common stock rights offering contemplated by the plan of reorganization, which resulted in a $100 million cash infusion of new equity capital led by the special opportunities funds of Ares Management, as well as funds managed by Whitebox Advisors and Highbridge Capital Management.
“Post-emergence, we have clear alignment with a strong and well capitalized group of lead shareholders on a shared vision for the company’s future,” Hornbeck said.
Kirkland & Ellis, Winstead and Jackson Walker served as legal counsel to Hornbeck Offshore Services. In addition, Guggenheim Securities acted as financial advisor, Portage Point Partners, served as restructuring advisor and Stretto served as claims and noticing agent for Hornbeck Offshore Services, which is a provider of offshore service vessels primarily in the Gulf of Mexico and Latin America.