Offshore staff
LONDON – Valaris plc has received approval from the US Bankruptcy Court for the Southern District of Texas of its prearranged plan of reorganization.
The plan has also received support from about 80% of the company’s unsecured notes and bank lenders representing 100% of its credit facility claims. In addition, about 81% of the company’s voting shareholders voted to accept the plan.
Tom Burke, president and CEO of Valaris, said: “This is an important milestone, as it clears the path for Valaris to emerge from chapter 11 early in the second quarter.”
Upon emergence and implementation of the plan, the drilling contractor will eliminate $7.1 billion of existing debt. The company will receive a $520 million capital injection through the issuance of a $550 million secured note maturing in 2028. The note includes the option of an 8.25% cash coupon, 10.25% half cash, half paid-in-kind coupon or 12% paid-in-kind coupon, all at the company’s election.
In addition, Valaris and Daewoo Shipbuilding & Marine Engineering Co. Ltd. have agreed to amend the two newbuild drillship contracts and extend each delivery date to Dec. 31, 2023. It also gives the company the option to take delivery early or terminate the contracts on a non-recourse basis. Final payments for the VALARIS DS-13 and VALARIS DS-14 are estimated to be approximately $119 million and $218 million, respectively.
03/04/2021
