Paragon Offshore has had its plan for reorganisation under chapter 11 approved by the United States Bankruptcy Court.
Paragon said that under the plan existing equity will be deemed worthless and the company’s secured creditors and unsecured bondholders will receive equity in a new reorganised parent company.
The Bankruptcy Court overruled objections raised at confirmation, including those raised by an unofficial committee of equity holders.
Dean E. Taylor, president and CEO of Paragon, commented: “We are extremely gratified to have received this ruling. Thanks are due to our employees, our board of directors, our creditors, and the professionals retained by Paragon and its creditors. Without their hard work and dedication, we could not have achieved this result, which allows us to emerge from the shadow of bankruptcy and return to our core business of delivering safe, reliable, and efficient services to our customers.”
Paragon is planning to emerge from chapter 11 in early July.