Drillship owner Pacific Drilling has filed a plan of reorganisation as part of its chapter 11 proceedings.
The reorganisation plan is based on a proposal presented to the company by a group of secured creditors, and will see the company raise $1.5bn of new capital.
Existing noteholders will end up with a 30.9% share of the reorganised company, however holders of Pacific Drilling common stock will receive no recovery.
Pacific Drilling says the plan was developed via comprehensive mediation discussions between the company’s board and its stakeholders, and strengthen the company’s balance sheet by reducing its leverage and delivering a substantial amount of new capital.
Pacific Drilling filed for chapter 11 in the US Bankruptcy Court last November.