Pacific Drilling and 21 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 17-13193. The Company, which operates as a floating-rig drilling contractor for the oil and gas industry, is represented by Andrew G. Dietderich of Sullivan & Cromwell.
The Company announced that the filing was initiated “with the aim to optimize its capital structure pending recovery in the floating rig drilling industry.” Pacific Drilling intends to use the Chapter 11 process to pursue a comprehensive restructuring of the Company’s approximately $3.0 billion in principal amount of outstanding funded debt.
According to documents filed with the Court, “Pacific Drilling plans to use the centralized forum provided by chapter 11 to stabilize its business, establish sensible cash management arrangements, provide information to all interested creditors and stockholders, continue to pursue resolution of the Zonda dispute, and recommence balance sheet discussions as part of plan negotiations. Meanwhile, Pacific Drilling seeks to continue operations in the ordinary course and limit, to the full extent possible, cash expenditures in order to preserve value for all stakeholders.”
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