Hornbeck Offshore Services Inc. (OTCQB:HOSS) reported yesterday that it has launched a solicitation of votes from its lenders and unsecured noteholders in support of a prepackaged Chapter 11 plan of reorganization.
The company had earlier announced that, under a restructuring support agreement, it had received support for the plan from secured lenders holding approximately 83% of its aggregate secured indebtedness and unsecured noteholders holding approximately 79% of its aggregate unsecured notes.
Hornbeck Offshore says it intends to commence a voluntary prepackaged chapter 11 filing in the United States Bankruptcy Court for the Southern District of Texas, Houston Division, within the coming days, and to seek a hearing on June 19 for confirmation of the plan following the conclusion of the solicitation period.
The company says it will have access to 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 it to operate in the ordinary course of business without disruption to its customers, vendors and workforce. The plan provides for payment in full of all vendors and employees.
The plan and related disclosure statement are available HERE.