Offshore Group Investment emerges from pre-packaged Chapter 11 case

By Caroline Salls

Pittsburgh, Feb. 10 – Offshore Group Investment Ltd. completed its pre-packaged restructuring and recapitalization and emerged from Chapter 11 bankruptcy on Wednesday and changed its name to Vantage Drilling International, according to a news release.

As previously reported, OGIL’s pre-packaged plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of Delaware on Jan. 15.

Through its pre-packaged Chapter 11 plan, OGIL said it eliminated more than $1.5 billion of senior secured debt and most cash interest and received $75 million in new exit financing.

“Today marks the completion of a restructuring and recapitalization that allows the company to move forward with a solid financial foundation from which we expect to continue to operate successfully and grow,” chief executive officer Paul Bragg said in the release.

The company’s plan agreement was reached with holders of $1.45 billion, or 59%, of OGIL’s secured notes and term loans and holders of 90% of its senior secured asset-backed loan facility.

Existing term loan lenders and secured noteholders will have the opportunity to participate in a rights offering for $75 million of new second-lien secured financing. This new capital commitment will be backstopped under an agreement to be entered into by some of Vantage’s existing creditors.

Plan terms

The company said the plan calls for a debt-for-equity swap that will result in existing term loan lenders and secured noteholders converting their loans and notes into equity and a share of $750 million of senior subordinated notes due 2030.

The new notes will pay interest through the issuance of additional notes and will have no cash interest rate.

Vantage’s and OGIL’s asset-backed revolving credit facility lenders have agreed to extend the maturity of that facility through March 2020, convert revolving loans into term loans and offer the company access to a $35 million letter-of-credit facility.

All customer, vendor and employee obligations associated with the ongoing business will remain unaffected.

Reorganized OGIL will issue new common shares, and the existing shares of OGIL held by parent Vantage Drilling Co. will be cancelled.

Vantage said it will receive new common shares in exchange for the promissory note it received for the parent assets.

In conjunction with the emergence, the company’s newly constituted board of directors is comprised of Nils E. Larsen, L. Spencer Wells, Esa Ikaheimonen, Matthew Bonanno and Bragg. The company said two additional directors will be appointed to the board, including Scott McCarty and Tom Bates.

Weil, Gotshal & Manges LLP served as legal counsel, and Lazard Freres & Co. LLC served as investment banker to the company. Alvarez & Marsal North America, LLC served as financial adviser.

OGIL is a subsidiary of Vantage Drilling Co., an offshore drilling contractor based in Houston. OGIL filed for bankruptcy on Dec. 3 under Chapter 11 case number 15-12422.

© 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.