Ocean Rig UDW schemes of arrangement enforced by U.S. bankruptcy court

By Caroline Salls

Pittsburgh, Sept. 20 – Ocean Rig UDW Inc. announced Wednesday that the U.S. Bankruptcy Court for the Southern District of New York gave full force and effect in the United States to the schemes of arrangement of the company and its subsidiaries.

According to a news release, the subsidiaries whose schemes were enforced are Drill Rigs Holdings Inc., Drillships Financing Holding Inc. and Drillships Ocean Ventures Inc.

As previously reported, the schemes were sanctioned earlier this week by the Grand Court of the Cayman Islands.

Ocean Rig said the schemes affect only financial debt. Operations will continue unaffected, and trade creditors and vendors will continue to be paid in the ordinary course of business and will not be affected by any of the schemes.

Once the restructuring effective date has occurred, Ocean Rig said the scheme companies will be substantially deleveraged through an exchange of $3.7 billion principal amount of debt for new equity, $288 million in cash and $450 million of new secured debt.

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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