Paragon Offshore wins cash collateral use extension to preserve value

By Caroline Salls

Pittsburgh, Dec. 20 – Paragon Offshore plc received court approval to extend its cash collateral use termination date, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the termination date was extended to the earlier of March 31 and the occurrence of a termination event from Dec. 30.

“The debtors’ ability to use cash collateral remains critical to preserve and maintain their going concern value during this time,” the motion said.

“Absent authority to use cash collateral, even for a limited period of time, the continued operation of the debtors’ business would suffer, causing immediate and irreparable harm to the debtors, their respective estates, and their creditors.”

Paragon, a Houston-based provider of offshore drilling rigs, filed for bankruptcy on Feb. 14, 2016. The Chapter 11 case number is 16-10386.

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