HOUSTON, Oct. 28, 2016 (GLOBE NEWSWIRE) -- Paragon Offshore plc (“Paragon” or the “company”) (OTC:PGNPQ) announced today that the United States Bankruptcy Court (the “Bankruptcy Court”) for the District of Delaware has given an oral ruling denying confirmation of the company’s previously filed Modified Second Amended Joint Chapter 11 Plan of Reorganization (the “Plan”). A written ruling is expected to follow shortly. Paragon filed for protection under chapter 11 of the United States Bankruptcy Code on February 14, 2016.
In issuing his oral ruling, Judge Christopher Sontchi commented that the Plan is not feasible as it removes too much cash from the company during the current downturn. However, he noted that his ruling did not preclude the company from a restructuring, only that the company could not do so under the current Plan.
Paragon is evaluating its course of action but cannot comment on details of the next steps the company will take. The company continues to believe, but cannot provide any assurances, that a positive resolution of the company’s restructuring process can be achieved.
Additional Information on Restructuring
Court filings as well as other information related to Paragon's restructuring are available through the company's claims agent, Kurtzman Carson Consultants, at http://www.kccllc.net/paragon or via phone call to 866-967-0491 (toll-free in North America) or 310-751-2691 (Outside North America).
Weil, Gotshal & Manges LLP is serving as legal counsel to Paragon and Lazard is serving as financial advisor.
Forward-Looking Disclosure Statement
This document contains forward-looking statements. Statements regarding the Plan, as well as any other statements that are not historical facts in this release, are forward-looking statements that involve certain risks, uncertainties and assumptions. These include but are not limited to risks associated with the general nature of the oil and gas industry, actions by regulatory authorities, customers and other third parties, and other factors detailed in the “Risk Factors” section of Paragon's annual report on Form 10-K for the fiscal year ended December 31, 2015, Paragon’s most recently filed report on Form 10-Q, and in Paragon's other filings with the SEC, which are available free of charge on the SEC's website at www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.
About Paragon Offshore
Paragon is a global provider of offshore drilling rigs. Paragon’s operated fleet includes 34 jackups, including two high specification heavy duty/harsh environment jackups, four drillships, and two semisubmersibles. Paragon’s primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Paragon’s principal executive offices are located in Houston, Texas. Paragon is a public limited company registered in England and Wales with company number 08814042 and registered office at 20-22 Bedford Row, London, WC1R 4JS, England. Additional information is available at www.paragonoffshore.com.