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Paragon Offshore Bankruptcy Reorganization Plan Further Amended

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Paragon Offshore filed with the U.S. Bankruptcy Court a Fourth Plan of Reorganization and related Disclosure Statement.

According to the Disclosure statement, “With respect to the New Equity Interests to be distributed to holders of Allowed General Unsecured Claims, all of the shares of the New Equity Interests will, to the extent such shares are permitted to beheld issued through DTC’s book-entry system, be issued in the name of such holder or its nominee(s) in accordance with DTC’s book-entry exchange procedures. No distributions will be made other than through DTC if the New Equity Interests are permitted to be held through DTC’s book entry system. Any distribution that otherwise would be made to any holder eligible to receive a distribution who does not own or hold an account eligible to receive a distribution through DTC on a relevant distribution date forfeited will be forfeited.”

In addition, “A critical issue in their negotiations leading up to the formulation of the Plan was the amount of Adequate Protection Obligations. The Debtors calculated the Adequate Protection Obligations based upon the diminution in value of the Secured Lenders’ prepetition Collateral from and after the Petition Date. The Collateral includes, among other things, the Debtors’ rigs, receivables, general intangibles, a portion of the Debtors’ Cash, and property, plants and equipment. Based upon a review of its rig appraisals, historical financial statements, and the New Business Plan, and with the input of their advisors, the Debtors calculated the diminution in value of the various asset classes comprising the Secured Lenders’ Collateral. The analysis revealed that the overall value of the Collateral has diminished by over $300,000,000 since the Petition Date, when taking into account the above factors and all adequate protection payments made and anticipated to be made throughout these cases pursuant to the Final Cash Collateral Order. Based upon their own analysis, the Secured Lenders contend that the diminution in the value of their Collateral exceeds $600,000,000.”

The Court subsequently approved the Disclosure Statement and scheduled a June 5, 2017 hearing to consider the Plan.

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The post Paragon Offshore Bankruptcy Reorganization Plan Further Amended appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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