The U.S. Bankruptcy Court approved Paragon Offshore’s Disclosure Statement and scheduled a June 5, 2017 hearing to consider the Third Joint Chapter 11 Plan [Revised].
According to documents filed with the Court, “The Plan and the New Business Plan address the concerns that the Bankruptcy Court expressed in the Confirmation Decision about the feasibility of the Second Amended Plan and the Debtors’ previous business plan. The key differences between the Plan and Second Amended Plan are, among others: (i) under the Plan, the Debtors will emerge from bankruptcy with only $85 million in debt, whereas, under the Second Amended Plan, the Debtors would have emerged from bankruptcy with over $1.2 billion in debt; and (ii) the reduced size of the Debtors’ business upon implementation of the New Business Plan will reduce the future operating costs and cash needs of the Company.”
In addition, “The Debtors believe that the Restructuring contemplated by the Plan will enable the Debtors to meet their obligations upon emergence from chapter 11, and confirmation of a Plan is not likely to be followed by liquidation or the need for further financial reorganization.”
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