Prepackaged Deal with Lenders will Allow Swift Restructuring with No Expected Impact on Customers, Services, Vendors or Employees The Plan will De-Lever the Balance Sheet, Provide $75 Million in Debtor-in-Possession Financing, Allow Use of Cash On Hand to Continue Operations During Reorganization, and Provide $100 Million of New Equity Capital Upon Emergence to Strengthen the Company’s Financial Position for Long-Term Success
Hornbeck Offshore Services, Inc. announced that it has launched a solicitation of votes from its lenders and unsecured noteholders in support of a prepackaged chapter 11 plan of reorganization (the “Plan”). As previously announced, pursuant to a restructuring support agreement, the Company has the support of secured lenders holding approximately 83% of the Company’s aggregate secured indebtedness and unsecured noteholders holding approximately 79% of the Company’s aggregate unsecured notes outstanding for the Plan. The Company intends to commence a voluntary prepackaged chapter 11 filing in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Court”) within the coming days, and to seek a hearing on June 19, 2020 for confirmation of the Plan following the conclusion of the solicitation period.
As previously reported, the Company will have access to a $75 million debtor-in-possession term loan facility provided by existing creditors and permitted use of existing cash on hand and cash generated from operations to support the business during the financial restructuring process, which will enable the Company to operate in the ordinary course of business without disruption to its customers, vendors and workforce. The Plan provides for payment in full of all vendors and employees.
The Plan and related disclosure statement are available at http://cases.stretto.com/Hornbeck. Upon the chapter 11 filing, more information about the Company’s restructuring, including access to Court documents, will be available at http://cases.stretto.com/hornbeck.
Kirkland & Ellis LLP, Winstead PC and Jackson Walker LLP are serving as legal counsel to the Company, Guggenheim Securities, LLC is acting as financial advisor, Portage Point Partners, LLC is serving as restructuring advisor and Stretto is serving as claims and noticing agent.
Hornbeck Offshore Services, Inc. is a leading provider of technologically advanced, new generation offshore service vessels primarily in the Gulf of Mexico and Latin America.
Source: Hornbeck Offshore