Ocean Rig UDW granted U.S. court recognition of Cayman proceedings

By Caroline Salls

Pittsburgh, Aug. 24 – Ocean Rig UDW Inc.’s Cayman Islands proceedings were recognized Thursday by the U.S. Bankruptcy Court for the Southern District of New York.

The court said the goal of the joint provisional liquidators for each of the Ocean Rig group’s four proceedings is to have the Cayman court sanction four schemes of arrangement and then, if sanctioned by the Cayman court, have this court recognize and enforce the schemes in the Chapter 15 cases.

U.S. bankruptcy judge Martin Glenn said in Thursday’s order that, if the Cayman court sanctions the schemes of arrangement, the U.S. court will proceed to determine whether each scheme of arrangement should be recognized and enforced.

As previously reported, the company said recognition of the provisional liquidation proceedings will result in the imposition of a stay of virtually all actions against the scheme companies and their property within the territorial jurisdiction of the United States for the duration of the Chapter 15 proceedings.

Recognition of the schemes and a subsequent enforcement order by the bankruptcy court will result in a permanent injunction on creditors taking any actions in the United States against the scheme companies that would be in violation of the scheme.

Ocean Rig is a deepwater driller based in Nicosia, Cyprus. The company filed for bankruptcy on March 27 under Chapter 15 case number 17-10736.

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