PARAGON OFFSHORE PLC

18 July 2017listing compliance notice▼ BadMajor

PARAGON OFFSHORE PLC terminated the registration of a class of securities, ending its reporting obligation for them.

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18 July 2017asset acquisition disposition▼ BadMajor

The confirmed chapter 11 plan took effect on July 18, 2017, and Paragon Offshore plc (in administration) emerged from bankruptcy. Substantially all its assets were moved to a new Cayman Islands company, Paragon Offshore Limited, whose shares went to creditors holding allowed claims under the plan; the old company and certain subsidiaries are to be wound down and dissolved by the Joint Administrators. New debt includes an $85 million first lien term loan maturing July 18, 2022 (LIBOR plus 6.00%, or base rate plus 5.00%) and a letter of credit agreement covering existing letters of credit with a face amount of $46,664,090.13, also maturing July 18, 2022. A litigation trust run by Drivetrain, LLC received the claims against Noble relating to the spin-off, backed by an interest-free loan of up to $10 million from Paragon International Finance Company. This completes the plan confirmed June 7, 2017; the filing text shown does not give new shares to old shareholders.

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8 June 2017bankruptcy or receivership▼ BadMajor

On June 7, 2017 the Delaware bankruptcy court confirmed the Fifth Joint Chapter 11 Plan, overruling all objections including those from an unofficial equity holders' committee. Existing shareholders get no recovery. Secured lenders get $410 million cash, $85 million of new first lien debt, and shares and litigation trust interests; noteholders get $105 million cash plus shares and trust interests; other unsecured creditors get the lesser of 30% or a share of $5 million. Around $2.4 billion of debt is eliminated, and the company and certain subsidiaries are to be wound down and dissolved by the administrators after the effective date.

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23 May 2017bankruptcy or receivership▼ BadMajor

On May 23, 2017 the English court appointed Neville Kahn and David Soden of Deloitte as joint administrators of Paragon Offshore plc, completing the step applied for on May 17. They now manage the company's affairs, while the board advises and executives keep running operations; the aim is to implement the chapter 11 plan, which treats existing equity as worthless. The Delaware confirmation hearing is still set for June 7, with emergence targeted for early July.

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17 May 2017bankruptcy or receivership▼ BadMajor

On May 17, 2017 Paragon's board applied to an English court to appoint two Deloitte partners as joint administrators, a step the company calls a necessary part of its chapter 11 'Consensual Plan'. The press release says that plan deems existing equity worthless, with secured creditors and bondholders receiving equity in a new parent. Management and the board stay on in operating and advisory roles, and a Delaware confirmation hearing is set for June 7, 2017, with emergence expected in July.

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25 Apr 2017material agreement termination▼ BadMajor

Noble Corporation ended the Noble Settlement Agreement on April 21, 2017, after Paragon filed a Fourth Joint Chapter 11 Plan that does not seek court approval of it. Under that agreement Noble would have provided bonding and covered its own legal entities' Mexican tax liability plus 50% of Paragon's, in exchange for Paragon releasing Noble from spin-off claims; Mexican tax assessments were about $165 million at Dec 31, 2016. The new plan also combines the 6.75% and 7.25% notes into one general unsecured class and provides for winding down dormant subsidiaries after emergence. This ends the Noble settlement thread from 2016.

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30 Nov 2016material agreement termination▼ BadMajor

The Bankruptcy Court denied confirmation of the Amended Plan on Nov 15, 2016, and on Nov 29 the noteholders and revolver lenders gave notice ending the plan support agreement effective Dec 2, 2016, citing among other things the lapse of the confirmation deadline. This reverses the August deal that creditors had all backed; Paragon is now in talks with noteholders, revolver lenders and term loan lenders on a new or amended plan, so what shareholders will get is unresolved.

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