Valaris, ex Ensco-Rowan, has entered right into a binding Restructuring Support Agreement (RSA) and Backstop Commitment Agreement (BCA) with roughly 50% of its noteholders. Valaris will endure a monetary restructuring that’s supposed to scale back its debt load considerably, assist continued operations throughout the present decrease demand surroundings and supply a sturdy monetary platform to reap the benefits of market restoration over the long run.
The RSA and the BCA ponder, amongst different objects, the complete equitization of the Company’s pre-petition revolving credit score facility and unsecured notes, a completely backstopped rights providing to noteholders for $500 million of latest secured notes, the efficient cancellation of present fairness pursuits within the Company in change for, in sure circumstances, warrants for post-emergence fairness and fee of commerce claims in full in money.
To implement the phrases of the RSA and the BCA, Valaris voluntarily filed for a Chapter 11 monetary restructuring within the United States Bankruptcy Court for the Southern District of Texas.
Valaris goals to pursue an environment friendly restructuring course of and exit Chapter 11 as quickly as doable and is assured complete monetary restructuring is in one of the best curiosity of the Company and its stakeholders within the long-term. Upon consummation of the contemplated restructuring transactions, Valaris may have among the finest stability sheets within the offshore drilling business.
The Company stays assured that it is going to be in a position to preserve liquidity and function within the strange course of enterprise because of having roughly $175 million in money.
“The substantial downturn within the power sector, exacerbated by the COVID-19 pandemic, requires that we take this step to create a stronger firm in a position to adapt to the extended contraction within the business, and to proceed to boost our place as total market situations enhance,” mentioned Tom Burke, President and Chief Executive Officer of Valaris.
Burke continued: “We have taken a number of steps to right-size and streamline our group consistent with our objective to be the offshore drilling value chief. Now, we intend to make use of this restructuring to enrich these measures to create a stronger monetary construction for the Company. Valaris will proceed to serve our prospects uninterrupted via this course of, delivering protected and dependable operations, via its highly-capable rig fleet.”
The Company appears to be like ahead to working with its different collectors and stakeholders who haven’t signed the RSA to advance the Company’s efforts to restructure its stability sheet.
Valaris is the business chief in offshore drilling companies throughout all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles and trendy shallow-water jackups, Valaris has expertise working in practically each main offshore basin. With an unwavering dedication to security and operational excellence, and a give attention to know-how and innovation, Valaris was rated first in complete buyer satisfaction within the newest impartial survey by EnergyLevel Research – the ninth consecutive yr that the Company has earned this distinction. Valaris plc is an English restricted firm with its company headquarters situated at 110 Cannon Street, London.
(Source and Image : Valaris – Valaris DS-6 in Wanvis Bay, Namibia)
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