The U.S. Bankruptcy Court has approved Paragon Offshore’s consensual plan of reorganization under chapter 11 of the U.S. Bankruptcy Code and the driller expects to emerge from bankruptcy next month.
Paragon announced its consensual plan of reorganization on May 2. Under the plan, Paragon’s existing equity will be deemed worthless and the company’s secured creditors and unsecured bondholders will receive equity in a new reorganized parent company.
According to the driller’s statement on Wednesday, in confirming the plan, the bankruptcy court overruled all objections raised at confirmation, including those raised by an unofficial committee of equity holders.
Paragon said it is planning for its emergence from chapter 11 in early July; however, this timing is subject to the completion of certain conditions precedent to emergence including, among other things, Paragon’s legal entity restructuring.
Following the ruling, Dean E. Taylor, President and Chief Executive Officer of Paragon, said, “We are extremely gratified to have received this ruling. Thanks are due to our employees, our board of directors, our creditors, and the professionals retained by Paragon and its creditors.
“Without their hard work and dedication, we could not have achieved this result, which allows us to emerge from the shadow of bankruptcy and return to our core business of delivering safe, reliable, and efficient services to our customers.”