Pacific Drilling’s ad hoc group of noteholders and Wilmington Trust (in its capacity as SSCF agent) filed with the U.S. Bankruptcy Court separate motions for an order, pursuant to Local Bankruptcy Rule 9019-1 and General Order M-452, appointing a mediator and ordering the proposed mediation parties to mediation.
The ad hoc group of noteholders explains, “The Ad Hoc Group submits that this Court should exercise that authority to (a) appoint a sitting judge from this Court as a mediator (the ‘Mediator’) to oversee the negotiation of a consensual chapter 11 plan among the Ad Hoc Group, Debtors, and the Debtors’ controlling shareholder, Quantum Pacific Group and collectively with the Debtors and the Ad Hoc Group, the ‘Proposed Mediation Parties’ and (b) require the Proposed Mediation Parties to participate in the mediation process on a schedule determined in accordance with the procedures set forth in the Proposed Order….The Ad Hoc Group believes that mediation before a qualified Mediator, especially a sitting judge from this Court, is the most economical and efficient way to bridge the gap between the Proposed Mediation Parties and bring an expeditious end to these Chapter 11 Cases.”
In addition, “Regardless of the reason, the fact is that months after the Petition Date and after over a year of protracted prepetition restructuring negotiations, the Proposed Mediation Parties have made almost no progress towards a consensual Plan. Indeed, the Proposed Mediation Parties find themselves no closer to a consensual restructuring today than when negotiations began in May 2016.” The Court scheduled a February 14, 2018 hearing to consider the mediator motion, with objections due by February 7, 2018.
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