Ocean Rig UDW says Schemes of Arrangement receives approval from Cayman Islands Court
Ocean Rig UDW (ORIG) said Monday that the Grand Court of the Cayman Islands has sanctioned the schemes of arrangements of the company and its subsidiaries, Drill Rigs Holdings Inc., Drillships Financing Holding Inc., and Drillships Ocean Ventures Inc.
The company said the terms of the restructuring have been approved by the Cayman Court. The company and its subsidiaries have filed the sanction orders with the registrar, therefore, in accordance with the requirements of the arrangements, the lodgment date has now occurred.
A hearing has been scheduled for Sept. 20 by the U.S. Bankruptcy Court to consider the JPLs’ motion for entry of an order giving full force and effect to the Schemes in the United States. The deadline for filing objections to the enforcement motion was Sep. 8 No objections to the enforcement motion are pending.
Ocean Rig said that the arrangements affect only financial indebtedness, and that operations will continue unaffected. Trade creditors and vendors will continue to be paid in the ordinary course of business and will not be affected by any of the arrangements. Once the restructuring effective date has occurred, the company and its subsidiaries will be substantially deleveraged through an exchange of approximately $3.7 billion principal amount of debt for new equity of the company, about $288 million of cash, and $450 million of new secured debt.
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