Offshore driller Valaris has completed its financial restructuring and emerged from chapter 11, with its plan approved and confirmed by the United States Bankruptcy Court for the Southern District of Texas on March 3, 2021.
Valaris has eliminated $7.1bn of debt and moves forward with a $520m capital injection by issuing $550m of new secured notes maturing in 2028. As of April 30, 2021, Valaris had $615m of available cash, $40m of restricted cash and $550m of debt.
“The last 12 months have been challenging from many perspectives,” said Tom Burke, president and CEO of Valaris.
“In the current commodity price environment, we are beginning to see the early signs of a recovery in customer demand following the downturn caused by the COVID-19 pandemic. With the elimination of more than $7bn of debt and an injection of significant additional capital, Valaris is best positioned to take advantage of opportunities going forward,” he added.
The new parent company of the Valaris Group will commence trading on the New York Stock Exchange on Monday, May 3. Shares of the former UK parent company ceased trading on the OTC Pink Marketplace as of April 28, 2021.
In addition, the company has appointed a new, seven-member board of directors, with Burke as president and CEO.
Valaris filed for chapter 11 in August 2020, and emerged with a fleet of 11 drillships, five semisubs and 44 jackups.