August 24, 2016 7:56 PM ET

Energy Equipment and Services

Company Overview of Paragon Offshore Drilling LLC

Company Overview

Paragon Offshore Drilling LLC provides services for oil and gas industry. The company offers drilling and labor contract drilling; well site and project management; and engineering services. The company was incorporated in 1930 and is based in Sugar Land, Texas. Paragon Offshore Drilling LLC operates as a subsidiary of Paragon Offshore plc. On February 14, 2016, Paragon Offshore Drilling LLC filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the District of Delaware. It is in joint administration with Paragon Offshore plc.

13135 South Dairy Ashford

Suite 800

Sugar Land, TX 77478

United States

Founded in 1939

Phone:

713-974-3131

Key Executives for Paragon Offshore Drilling LLC

Chairman and Chief Executive Officer
Age: 73
President
Age: 63
Compensation as of Fiscal Year 2016.

Paragon Offshore Drilling LLC Key Developments

Second Amended Reorganization Plan and Disclosure Statement Filed by Paragon Offshore plc

Paragon Offshore plc, along with its affiliates, filed second amended joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on April 4, 2016. As per the amended plan filed, Allowed Secured Term Loan of $641.88 million will be reinstated. Paragon Offshore plc, along with its affiliates, filed a revised second amended joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on April 8, 2016. As per the amended plan filed, there shall be no change in the treatment of any claim class. Paragon Offshore plc, along with its affiliates, filed a modified second amended joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on August 5, 2016. As per the modified amended plan filed, Senior Notes Claims shall receive a recovery of 58.2% to 77.8% in the form of a cash payment in the amount of $285 million, new notes of $60 million and 47% of the total outstanding ordinary shares of reorganized Paragon. The holders of parent interests shall retain their parent interests which shall be subject to dilution and shall comprise in the aggregate 53% of the total outstanding ordinary shares of reorganized Paragon. The debtor reported cash in hand of $1.06 billion and issuance of new notes of $60 million. There shall be no changes in the treatment of any other claim class. Debtor filed further modifications to the second amended plan of reorganization and related disclosure statement in the US Bankruptcy Court on August 15, 2016. Treatment of all the claim classes remains same as per the previous plan. Debtor filed supplements to the second amended related disclosure statement in the US Bankruptcy Court on August 16, 2016. As per the supplement filed, there shall be no changes in the treatment if any claim class.

Amended Reorganization Plan and Disclosure Statement Filed by Paragon Offshore plc

Paragon Offshore plc, along with its affiliates, filed an amended joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on March 24, 2016. As per the amended plan filed, Revolving Credit Agreement Claims of $795.66 million will be satisfied through payment of $165 million in cash and issuance of debt. Holders of 6.75% Senior Notes Claims ($474.64 million) and 7.25% Senior Notes Claims ($546.11 million) will recover in the range of 52% to 66.5% of their respective claim amounts. Both of these claims will be satisfied through payment of $345 million in cash and issuance of debtor’s equity consisting of 35% of the debtor’s common stock.

Reorganization Plan and Disclosure Statement Filed by Paragon Offshore plc

Paragon Offshore Plc filed a joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on February 14, 2016. As per the plan filed, holders of Administrative Expense Claims and Fee Claims shall be paid in full in cash. Priority Tax Claim holders will be paid by the Debtors in the ordinary course of business. Priority Non-Tax Claims holders will be paid in cash or any other treatment at the option of debtors. At the option of debtor, Holders of Other Secured Claims shall receive cash or reinstatement of claim or return of the applicable collateral in full satisfaction. Holders of Revolving Credit Agreement Claims of $795.6 million plus accrued interest will receive pro rata share of any accrued and unpaid interest, $165 million in cash and remaining loans consisting of term loan of $544 million and line of credit of $89 million. Holders of Secured Term Loan claims of $644.95 million will have their claims reinstated. Holders of Senior Notes Claims, consisting of 7.25% Senior Notes of $546.01 million and 6.75% Senior Notes Claims of $474.55 million, will recover maximum of 72.6% of the claim and will jointly receive pro-rata share of ordinary shares of parent which will comprise of 35% of the total outstanding shares, right to receive the 2016 Deferred Cash Payment and the 2017 Deferred Cash Payment in accordance with the terms of the Plan, and $345 million in cash. Debtors will continue to pay or dispute each General Unsecured Claim in the ordinary course of business. All Intercompany Claims will be paid, adjusted, continued, settled, reinstated, discharged, or eliminated, in each case to the extent determined to be appropriate by the Debtors in their sole discretion. Holders of Parent Interests will retain their Parent Interests, subject to dilution on account of new issuance of shares. After the issuance of the Parent Ordinary Shares, the Parent Interests will comprise in the aggregate 65% of the total outstanding ordinary shares of Reorganized Paragon. All Intercompany Interests held by Paragon Parent or a direct or indirect subsidiary of Paragon Parent will be unaffected by the Plan and continue in place following the Effective Date. The proposed plan will be funded by cash in hand, term loan of $544, line of credit of $89 million and issuance of new equity.

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