U.S. offshore vessel operator Hornbeck Offshore has emerged from chapter beneath its joint prepackaged Chapter 11 plan of reorganization.
Hornbeck Offshore entered right into a assist settlement for complete stability sheet restructuring again in April 2020.
By the tip of June, the corporate acquired approval for its reorganization plan from the U.S. District Court for the Southern District of Texas.
According to Hornbeck’s replace on Friday, the efficient date of its completion of reorganization was four September 2020.
The reorganization plan carried out the restructuring assist settlement negotiated with the corporate’s lenders and noteholders.
“The fast completion of our reorganization and emergence from Chapter 11 is a major achievement, notably given the presently very difficult financial atmosphere”, stated Todd M. Hornbeck, Chairman, President and CEO of Hornbeck Offshore Services.
Pursuant to the plan, all common unsecured collectors, together with the corporate’s commerce collectors and distributors, had been paid in full within the unusual course of enterprise; the corporate’s debtor-in-possession financing was transformed into a brand new senior secured exit facility; all the firm’s pre-petition secured loans and unsecured senior notes had been cancelled in alternate for brand new secured debt, new fairness, and new fairness rights (or money, if relevant) as of the efficient date; and all the firm’s pre-petition fairness pursuits had been extinguished as of the efficient date.
In addition, the corporate closed on the frequent inventory rights providing contemplated by the plan, which resulted in a $100 million money infusion of recent fairness capital led by the Special Opportunities Funds of Ares Management, in addition to funds managed by Whitebox Advisors and Highbridge Capital Management.
“Post-emergence, we’ve got clear alignment with a robust and well-capitalized group of lead shareholders on a shared imaginative and prescient for the corporate’s future”, continued Hornbeck.
New board of administrators
As a part of the plan, a brand new board of administrators was appointed by the corporate.
The new board of administrators is comprised of Todd M. Hornbeck (Chairman), Evan Behrens, Kurt M. Cellar, former Louisiana Governor Bobby Jindal, Kevin O. Meyers, Ph.D., Admiral John Richardson, USN (Ret) and John T. Rynd.
The firm additionally introduced that Larry D. Hornbeck has been named Chairman Emeritus.
Hornbeck added: “We are happy to have a distinguished new board whose members present deep experience and imaginative and prescient throughout the spectrum of power, enterprise, finance and authorities points we count on to face within the years forward”.
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