Houston-based offshore rig operator Paragon Offshore has emerged from Chapter 11 bankruptcy in the US after meeting the terms of its reorganization.
In May, Paragon went into administration in the UK and in June it received approval from the US Bankruptcy Court for its plan of reorganization, which entailed existing equity being deemed worthless while secured creditors and unsecured bondholders receiving equity in a new parent company.
Paragon’s first proposal for reorganization had been rejected by the US court in October last year.
The new company, Paragon Offshore Ltd (where its predecessor had been Paragon Offshore plc) said that the reorganization has unburdened the company of about $2.3bn in debt.
It has eight rigs in operation, plus one due to start work next month, $165m on its balance sheet and $85m of new debt.
The company had entered difficulties when market conditions led to rig contracts being cancelled.