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

Offshore Group Investment Limited Chapter 11 Petition, Plan Filed

Offshore Group Investment Limited (OGIL) and more than 20 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 15-12422. The Company, which is an offshore oil drilling contractor, is represented by Daniel J. DeFranceschi of Richards, Layton & Finger. Separate proceedings in connection with winding down the parent holding company will be commenced in the Cayman Islands. Offshore Group Investment and each of the affiliated Debtors is a wholly-owned subsidiary of Vantage Drilling, which did not file for Chapter 11 protection. In turn, 32.9% of the equity of Vantage Drilling is directly owned by F3 Capital, an entity 100% owned and controlled by Hsin-Chi Su (aka Nobu Su), a former director of Vantage Drilling. The Company concurrently announced an agreement on a Prepackaged Joint Plan of Reorganization to substantially deleverage its capital structure with holders of approximately $1.45 billion, or approximately 59%, of its secured notes and term loans as well as holders of approximately 90% of its senior secured asset-backed loan facility. Existing term loan lenders and secured noteholders will have the opportunity to participate in a rights offering for $75 million of new second lien secured financing. The Company filed with the Court its Prepackaged Joint Plan and related Disclosure Statement. Among other things, the Plan provides for a debt-for-equity swap that will result in existing term loan lenders and secured noteholders converting their loans and notes into equity and a pro rata share of $750 million of senior subordinated notes. The new notes will pay interest through the issuance of additional notes (PIK notes) and will have no cash interest rate burden. OGIL's asset backed revolving credit facility lenders have agreed to extend the maturity of that facility through December 2019, convert revolving loans into term loans and offer the Company access to a $32 million letter of credit facility. Paul Bragg, C.E.O. of Vantage Drilling and OGIL, comments, "Vantage and OGIL have been working on a path forward to deleverage its capital structure and take advantage of market opportunities with a strong balance sheet in light of market conditions, and we are extremely pleased to have our senior debtholders support the company to accomplish these goals, position ongoing operations for the long-term as well as to provide additional capital to supplement our solid liquidity position."

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