Valaris: Holders of more than 70% of notes now support restructuring

By Caroline Salls

Pittsburgh, Sept. 11 – Valaris plc announced in a Friday news release that holders of more than 70% in principal amount of its senior notes have now signed on to its restructuring support agreement and backstop commitment agreement.

The company said it originally entered into the agreements on Aug. 18 with holders of about 50% in principal amount of the senior notes.

The agreements call for the full equitization of Valaris’s pre-bankruptcy revolving credit facility and unsecured notes, a fully backstopped rights offering to noteholders for $500 million of new secured notes, the cancellation of existing equity interests in exchange for, under specified circumstances, warrants for post-emergence equity and payment of trade claims in full in cash.

In addition, Valaris said it reached an agreement with the consenting noteholders to extend the expiration of the backstop joinder period to 11:59 p.m. ET on Sept. 14.

Kirkland & Ellis LLP and Slaughter and May are serving as legal advisers to Valaris in connection with the restructuring. Lazard Ltd. is serving as Valaris’s investment banker, and Alvarez & Marsal North America LLC as its restructuring adviser.

Valaris is a London-based offshore drilling company. The company filed bankruptcy on Aug. 19 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 20-34114.

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