U.S. offshore vessel operator Hornbeck Offshore expects to emerge from chapter within the coming few months following approval of its reorganization plan by a U.S. court docket and after clearing governmental approvals.
Hornbeck entered right into a restructuring assist settlement for complete stability sheet restructuring again in mid-April 2020.
In an replace final Friday, Hornbeck stated that its Joint Prepackaged Chapter 11 Plan of Reorganization was permitted by Judge David R. Jones of the United States District Court for the Southern District of Texas.
The confirmed plan achieved the overwhelming assist of 100 per cent of voting Class four First Lien Claims in quantity, 99.9 per cent of voting Class 5 Second Lien Claims in quantity, and 99.eight per cent of voting Class 6 Unsecured Notes Claims in quantity.
The firm expects to emerge from chapter upon clearing numerous governmental approvals, that are anticipated to happen throughout the coming few months.
“The Court’s approval of our Plan of Reorganization is one other vital milestone in our restructuring course of and we admire the overwhelming present of assist from our lenders and noteholders”, stated Todd M. Hornbeck, CEO of Hornbeck Offshore Services.
The firm has entry to a $75 million debtor-in-possession time period mortgage facility offered by present collectors and permitted use of present money available and money generated from operations to assist the enterprise through the monetary restructuring course of, which is able to allow it to function within the odd course of enterprise with out disruption to its clients, distributors, and workforce.
The plan supplies for fee in stuffed with all distributors and staff.
Hornbeck added: “The firm has skilled no interruption in service from distributors or staff on account of the restructuring course of”.
The firm has acquired subscriptions for a $100 million rights providing with respect to the deliberate issuance of shares of recent fairness, which is able to end in a $100 million enhance in liquidity and is anticipated to shut on the plan’s efficient date.
In addition, the plan contemplates a post-emergence first-lien senior secured time period mortgage credit score facility and second-lien senior secured time period mortgage credit score facility, every in an mixture principal quantity to be decided.
The plan contemplates the extinguishment of all pre-petition fairness within the firm upon emergence from chapter.
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