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BRIEF-Paragon Offshore announces agreement in principle to support new plan of reorganization
January 18, 2017 / 11:29 PM / 8 months ago

BRIEF-Paragon Offshore announces agreement in principle to support new plan of reorganization

Jan 18 (Reuters) - Paragon Offshore Plc

* Paragon Offshore announces agreement in principle to support a new plan of reorganization with term lenders and revolver lenders

* Paragon Offshore Plc - agreement eliminates approximately $2.4 billion of debt through combination of cash and equitization

* Paragon Offshore Plc - secured term lenders and secured revolver lenders projected to receive their pro rata share of approximately $421 million in cash

* Paragon Offshore Plc - expects to emerge from chapter 11 process with approximately $190 million of cash on hand

* Paragon Offshore Plc - existing shareholders are not expected to receive a recovery under new plan

* Paragon Offshore Plc - unsecured bondholders projected to receive approximately $50 million in cash

* Paragon Offshore Plc - new debt will permit co to obtain up to an aggregate face amount of $35 million in letters of credit senior to new debt

* Paragon Offshore-reached agreement with secured lenders which eliminates all of previous debt from company’s balance sheet

* Paragon Offshore-secured term lenders and secured revolver lenders projected to receive approximately 58% of new common equity subject to adjustments

* Paragon Offshore Plc - currently developing and expects to file new plan and a new disclosure statement with respect to new plan in next few weeks

* Paragon Offshore Plc - unsecured bondholders projected to receive approximately 42% of new common equity subject to certain adjustments

* Paragon Offshore-secured lenders will be entitled to appoint a majority of reorganized company’s new board of directors upon emergence from bankruptcy

* Paragon Offshore Plc says company will seek to obtain court approval of new plan and emerge from chapter 11 as soon as possible in first half of 2017 Source text for Eikon: Further company coverage:

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