Hercules Offshore’s Amended and Modified Joint Prepackaged Chapter 11 Plan that incorporates a mediation settlement became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on November 15, 2016.
According to BankruptcyData’s summary, “Under the terms of the Plan, all of the Company’s assets will be marketed for sale, and those left unsold at the completion of the Chapter 11 process will be placed into a wind-down vehicle to ensure their continued, safe operation until sales are finalized. The Company’s international subsidiaries are not included as part of the Chapter 11 cases but will be part of the sale process.”
In addition, “The Liquidation Analysis for Reorganized Hercules Offshore estimates the Total Gross Proceeds Available for Distribution to be between $328.15 million and $447.43 million. The recovery rate to the Senior Secured Claims is estimated to be between 69.7% to 100%. The recovery rate to General Unsecured Claims is estimated to be zero.” John T. Rynd, Hercules Offshore’s C.E.O. and president, notes, “With our new capital structure, we are much better positioned to compete successfully in the offshore drilling market.” This oil and gas provider filed for Chapter 11 protection on June 5, 2016, listing $1.1 billion in pre-petition assets.
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