Hornbeck Offshore expects to complete Chapter 11 restructuring “very quickly”
Written by Nick Blenkey
Covington, La., based Hornbeck Offshore Services, Inc. (NYSE:HOS, OTCQB:HOSS) reports that it has now reached a restructuring support deal with secured lenders and unsecured noteholders on a balance sheet restructuring of the company expected to be implemented through a voluntary pre-packaged Chapter 11 case in the United States Bankruptcy Court for the Southern District of Texas
The company says it expects the pre-packaged Chapter 11 reorganization to be “completed very quickly” with the support of its creditors.
It says that both prior to and subsequent to the expected Chapter 11 filing, it will have sufficient liquidity to continue operations, meet all operational payment obligations and support its business, and will continue to operate in the ordinary course of business without disruption to its customers, vendors and workforce.
The restructuring support agreement contemplates a $75 million debtor-in-possession term loan facility provided by existing creditors and permitted use of existing cash on hand and cash generated from operations to support the business during the financial restructuring process, which will enable the company to operate in the ordinary course of business without disruption to its customers, vendors and workforce. The agreement provides for payment in full of all vendors and employees.
Commenting on the company’s plans, Todd M. Hornbeck, Chairman, President and CEO stated, “The COVID-19 pandemic and the recent drop in oil prices due to an acute global supply-demand imbalance have significantly impacted the industries we serve, making an already challenging environment for the company even more difficult. The shared objectives of the company and our creditors are to meaningfully reduce the company’s financial leverage on a consensual basis and source new capital to position the company for future growth. I want to thank our secured lenders and unsecured noteholders for joining together with us on a game plan for an expedited court-supervised financial restructuring process. This consensual approach to reorganization and recapitalization is in the best long-term interest of our company, as it will enable us to take advantage of new opportunities while continuing to support our customers, retain our employees and pay our vendors.”
More HERE
