Pacific Drilling announces progress made in Chapter 11 proceedings

By Caroline Salls

Pittsburgh, Aug. 31 – Pacific Drilling SA announced Friday that it has made progress in connection with its Chapter 11 proceedings.

According to a company news release, the U.S. Bankruptcy Court for the Southern District of New York approved Pacific Drilling’s entry into a commitment letter for a third-party financial institution related to the $700 million first-lien notes offering called for in the company’s plan of reorganization.

In addition, Pacific Drilling said the court approved the backstop commitment by some members of an informal group of creditors and the commitment premium payable to those commitment parties, in each case as agreed by the parties in the commitment agreement for the second-lien notes offering.

However, the company said the rest of second-lien commitment agreement remains subject to the ongoing review of the bankruptcy court.

The court also approved Pacific Drilling’s implementation of a 2018 key employee incentive plan, the release said.

The incentive plan motion said the maximum payout under the 2018 portion of the plan and an annual incentive program would be $8.2 million, with 11 insider employees eligible to participate.

Pacific Drilling is a Luxembourg-based operator of drillships. The company filed for bankruptcy on Nov. 12, 2017 under Chapter 11 case number 17-13193.

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