Parker Drilling disclosure statement approved; plan hearing March 5

By Caroline Salls

Pittsburgh, Jan. 24 – Parker Drilling Co. received court approval of the disclosure statement for its pre-packaged plan of reorganization, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The plan confirmation hearing is scheduled for March 5.

As previously reported, Parker Drilling filed bankruptcy to implement a restructuring support agreement with holders of a significant amount of its 7½% senior notes due 2020 and 6¾% senior notes due 2022, as well as holders of its preferred stock and common stock.

Parker said its proposed plan reduces roughly two-thirds of funded debt and injects $95 million of new, fully committed equity capital through a backstopped rights offering.

The plan also calls for the issuance of a new $210 million second-lien term loan due 2024 to satisfy the remaining existing notes.

Current preferred equity holders and common equity holders will receive reorganized equity and warrants.

Also, under the plan, vendors and other unsecured creditors who continue to work with the company on existing terms will be paid in full and in the ordinary course of business. All existing customer and vendor contracts are expected to remain in place and be serviced in the ordinary course of business.

Parker Drilling is a Houston-based provider of drilling services and rental tools to the energy industry. The company filed bankruptcy on Dec. 12, 2018 under Chapter 11 case number 18-36958.

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