Valaris emerges from bankruptcy
Offshore drilling company Valaris Limited and the Valaris Group announced the company emerged from Chapter 11 bankruptcy at the end of April.
The company completed its financial restructuring and eliminated $7.1 billion of debt, according to a news release. It will move forward with a $520 million capital injection by issuing $550 million of new secured notes maturing in 2028, the release states. As of April 30, 2021, Valaris had $615 million of available cash, $40 million of restricted cash and $550 million of debt.
The United States Bankruptcy Court for the Southern District of Texas approved the Houston-based company’s plan of reorganization on March 3, according to Valaris.
Morrison & Foerster advised the official committee of unsecured creditors of Valaris and its affiliated debtors in connection with their chapter 11 cases and parallel UK administration proceeding.
The financial restructuring was effected by way of a UK administration proceeding and pre-pack sale. The sale involved a series of transactions that resulted in the sale of substantially all of Valaris’s assets to a new holding structure. Valaris Limited, the parent of the new holding structure is now owned by the unsecured creditors of Valaris, as set out in the chapter 11 plan of reorganization.
"Today marks an important milestone as the Company emerges from chapter 11 with a significantly strengthened capital structure," said Tom Burke, President and CEO of Valaris. "The last 12 months have been challenging from many perspectives. However, I am immensely proud of our employees' hard work and commitment over this period. Our offshore crews and shore-based staff remain focused on delivering safe, efficient and reliable drilling services to our customers."
The Valaris Group emerges with 11 drillships, five semisubmersibles and 44 jackups capable of meeting a broad spectrum of customers' requirements across all geographies.
The common stock and warrants of the new parent Company of the Valaris Group commenced trading on the New York Stock Exchange under the ticker symbols VAL and VAL WS, respectively, at market open Monday.
The company filed for prearranged bankruptcy in August and sold two rigs for $3.5 million each.
The financial restructuring was effected by way of a UK administration proceeding and pre-pack sale. The sale involved a series of transactions that resulted in the sale of substantially all of Valaris’s assets to a new holding structure. Valaris Limited, the parent of the new holding structure is now owned by the unsecured creditors of Valaris, as set out in the chapter 11 plan of reorganization.
