Paragon Offshore filed with the U.S. Bankruptcy Court a motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including June 5, 2017 and August 4 2017, respectively.
The motion explains, “Since the Debtors last obtained an exclusivity extension, they have made meaningful progress towards bringing these cases to a conclusion. The Debtors have requested, and this Court has agreed to appoint, a mediator in the hopes of resolving the parties’ differences regarding the Third Joint Chapter 11…and arriving at a restructuring plan supported by all key creditor constituencies. The mediation is scheduled to proceed on April 5 and 6, 2017, and its outcome may materially impact the future of these cases for the better. Should the mediation prove successful, the Debtors will expect to propose, file, and expeditiously prosecute a new chapter 11 plan – one that would reflect a global agreement among the Debtors, their Secured Lenders, and the Creditors’ Committee.”
In addition, “If the mediation is unsuccessful, the Debtors are prepared to move forward without delay with the current restructuring plan supported by their Secured Lenders….In the absence of a global deal, the Debtors will be poised to begin the solicitation process for the Third Plan shortly after the conclusion of the mediation. From there, it will be only a few weeks to the start of the confirmation hearing on June 5, 2017. No matter which path these cases take, the Debtors cannot afford to accommodate any unnecessary distractions and delays. An expeditious resolution of these cases is essential to Paragon remaining as a going concern.”
The motion continues, “Moreover, allowing other parties to file a competing plan at this stage would be of questionable benefit to the estates. Any such plan would be required to cram up secured creditors holding over $1.4 billion of debt; a difficult, if not impossible, task under the current circumstances.”
The Court scheduled an April 28, 2017 hearing to consider the motion, with objections due by April 17, 2017.
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