Paragon Offshore Group announced that it has emerged from bankruptcy after completing a restructuring that eliminated USD 2.3 billion of debt.
The successor company to Paragon Offshore PLC , which filed for bankruptcy in February 2016 with USD 2.96 billion of debt, also named a new board of directors. The search for a new CEO is underway.
"The plan of reorganization under chapter 11 of the United States Bankruptcy Code substantially de-levers the company’s ongoing business, eliminating approximately $2.3 billion of secured and unsecured debt. New Paragon emerges with eight rigs currently operating plus a ninth rig expected to commence operations in August 2017, approximately $165 million of available cash on its balance sheet, and $85 million of new debt," said a statement from the company.
Dean E. Taylor, Interim President and Chief Executive Officer of New Paragon, said, “It is with deep satisfaction that we close this chapter of New Paragon’s story. With a clean balance sheet and good liquidity, we emerge from bankruptcy as a stronger company—more focused on our core operating areas in the North Sea, Middle East, and India and better positioned to compete in the recovering, but still very challenging, offshore drilling industry."
Dean added: "We thank our creditors for working with us to make this new beginning possible, as well as our outgoing board of directors, our employees, our customers, our suppliers, and our advisors. We now look forward to returning our focus to what we do best-providing Safe, Reliable, and Efficient services to our customers.”
New Paragon also named a new board of directors with immediate effect. The board members, who were selected by Paragon plc’s secured and unsecured creditors following a successful search by Korn Ferry.
Korn Ferry is also in the process of conducting a search for a Chief Executive Officer. In the interim, Taylor will continue in this role.
“We are excited to join the board of a stronger, more secure Paragon,” said Mr. Swent on behalf of the incoming board of directors. “Our goal is to assist the company in capitalizing on opportunities to unlock value for Paragon’s new shareholders while delivering exemplary services to its customers.”