Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Energy

Hercules Offshore Plan Confirmed

The U.S. Bankruptcy Court approved Hercules Offshore's Disclosure Statement and concurrently confirmed the Joint Prepackaged Plan of Reorganization. According to documents filed with the Court, "[T]he Plan substantially deleverages the Debtors' balance sheet by converting approximately $1.2 billion of debt under the Senior Notes into 96.9% of the equity in Reorganized HERO. As part of the overall settlement embodied in the Restructuring Support Agreement and the Plan, the holders of Senior Notes are voluntarily forgoing their right to part of the distributions under the Plan that they are otherwise entitled to receive so that the Debtors can (i) pay in full allowed general unsecured claims, such as the claims of suppliers and vendors, in the ordinary course according to existing business terms and (ii) provide a pro rata distribution of a portion of the New HERO Common Stock and the New HERO Warrants to holders of HERO Equity Interests in exchange for the surrender or cancellation of their Equity Interests. The key components of the Plan are as follows: Holders of Allowed General Unsecured Claims, including Allowed Claims of trade vendors, suppliers, and customers, will not be affected by the filing of the Chapter 11 Cases and, subject to Court approval, are anticipated to be paid in full in the ordinary course of business during the pendency of the Chapter 11 Cases or reinstated and left unimpaired under the Plan in accordance with their terms as part of the overall compromise embodied in the Plan. Payment in full, in cash, of all Allowed Administrative Claims, Fee Claims, Priority Tax Claims, statutory fees, Other Priority Claims, and Other Secured Claims. Holders of Allowed Senior Notes Claims will receive their Pro Rata share of 96.9% on a fully diluted basis (subject only to the New HERO Warrants and the New HERO Management Incentive Program Equity) of the New HERO Common Stock outstanding as of the Effective Date....Entry into the new $450 million First Lien Exit Facility….In sum, the Plan embodies a global settlement as part of an expeditious and consensual restructuring. This avoids potential litigation that could decrease value for all stakeholders and delay (and possibly derail) the restructuring process." This oil and gas drilling services provider filed for Chapter 11 protection on August 13, 2015, listing $2 billion in pre-petition assets.

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