Ocean Rig scheme hearings start Sept. 4, enforcement hearing Sept. 20

By Caroline Salls

Pittsburgh, Aug. 29 – Ocean Rig UDW Inc. said the U.S. Bankruptcy Court for the Southern District of New York will conduct a hearing on Sept. 20 to consider an order enforcing the Ocean Rig schemes of arrangement in the United States if the schemes are approved by the Grand Court of the Cayman Islands at hearings scheduled for Sept. 4 through Sept. 6.

As previously reported, the U.S. court granted recognition of the Cayman provisional liquidation and scheme of arrangement proceedings as foreign main proceedings on Aug. 24.

According to a news release, Ocean Rig received “an overwhelming level of support” for the schemes from affected creditors at meetings held on Aug. 11.

The company said only five funds managed by Highland Capital Management LP opposed the Ocean Rig UDW scheme.

If the schemes are sanctioned, the scheme companies will be substantially deleveraged through an exchange of $3.7 billion principal amount of debt for new equity of the company, roughly $288 million of cash and $450 million of new secured debt.

“Recognition by the U.S. Bankruptcy Court of the provisional liquidation and scheme of arrangement proceedings was an important milestone,” Simon Appell said on behalf of the joint provisional liquidators in the release.

“The JPLs are pleased that the restructuring is progressing on schedule.”

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.