Paragon Offshore has sought to go into administration in the UK as part of its reorganisation plan under Chapter 11 in the US.
“We believe that the appointment of administrators is an important positive step forward in Paragon’s restructuring process,” said Dean Taylor, Paragon’s president and CEO.
Paragon’s consensual plan will eliminate more than $2.4bn of existing debt which Taylor said would allow the company to emerge from chapter 11 as a “stronger, better positioned company capable of managing the challenges of this difficult environment”.
If the application is approved by the UK Court, the next milestone will be Paragon’s confirmation hearing, scheduled to commence June 7 in Delaware, following which, if confirmed, it expects to emerge from chapter 11 in July.”
Under administration, Paragon stressed it will continue to conduct business in its normal course. Drilling contracts will continue and vendors and employees will continue to be paid.