Paragon Offshore has reached a consensual restructuring agreement between secured and unsecured lenders, establishing a litigation trust for creditors to pursue claims against Noble Corporation.
The deal will allow unsecured noteholders to receive $105m in cash and 50% of new common equity.
Paragon Offshore said it expects to emerge from Chapter 11 with approximately $160m in cash.
Term lenders and revolver lenders will get pro rata shares of $410m in cash, 50% of new equity, new term debt of $85m.
Paragon Offshore has decided to abandon a previously disclosed settlement agreement with Noble Corp.
Dean Taylor, president and CEO of the company, said, “This agreement is a tremendous step forward in Paragon’s plan to emerge from Chapter 11, clearing the path to an early June 2017 confirmation hearing that will be uncontested by any of Paragon’s key creditor groups.”
