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Diamond Offshore set to emerge from chapter 11

Houston-based Diamond Offshore Drilling has entered into an agreement with holders of over 70% of its senior unsecured notes and revolving credit facility loans regarding a financial restructuring transaction that will see the company emerge from chapter 11.

Diamond Offshore has been working on the plan since filing for chapter 11 in April 2020, and says it will emerge with a reduction of over $2.1bn of funded indebtedness.

Additionally, certain holders of senior unsecured notes have agreed to invest up to $110m of new capital while certain holders of revolving credit facility loans have agreed to provide exit financing facilities. Proceeds of the new exit financing facilities will fund plan distributions and provide sufficient liquidity for Diamond to operate successfully post-emergence.

The company is now seeking to emerge from chapter 11 as quickly as possible. After the restructuring, Diamond says it will have a strong cash position with sufficient liquidity to benefit from an eventual market recovery.

Marc Edwards, chairman, president and CEO of Diamond Offshore, said: “The comprehensive plan support agreement we signed today raises new capital and is overwhelmingly supported by our banks and our bondholders. We look forward to emerging with a stronger balance sheet, significantly less debt, and increased financial flexibility. This agreement is a testament to the market’s belief in Diamond and our world class team. With our improved capital structure, we will be in a strong position to capitalize on market opportunities as they emerge.”

Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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