Offshore driller exits Chapter 11

Written by Nick Blenkey
Vlaris president and CEO Tom Burke

Valaris president and CEO Tom Burke: “We are beginning to see the early signs of a recovery.”

Offshore drilling contractor Valaris — which until a 2019 name change was called EnscoRowan — reports that on April 30, 2021, it completed its financial restructuring and emerged from Chapter 11 bankruptcy.

The group’s plan of reorganization was approved and confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on March 3, 2021.

Valaris says it now “moves forward with a strengthened capital structure, eliminating $7.1 billion of debt and securing a $520 million capital injection by issuing $550 million of new secured notes maturing in 2028. As of April 30, 2021, Valaris had $615 million of available cash, $40 million of restricted cash and $550 million of debt.”

“Today marks an important milestone as the company emerges from chapter 11 with a significantly strengthened capital structure,” said Tom Burke, president and CEO of Valaris.

“In the current commodity price environment, we are beginning to see the early signs of a recovery in customer demand following the downturn caused by the COVID-19 pandemic,” said Burke. “With the elimination of more than $7 billion of debt and an injection of significant additional capital, Valaris is best positioned to take advantage of opportunities going forward.”

The Valaris Group emerges with a fleet of 11 drillships, five semisubmersibles and 44 jack-ups.

The common stock and warrants of the new parent company of the Valaris Group will commence trading on the New York Stock Exchange under the ticker symbols VAL and VAL WS, respectively, at market open today, Monday, May 3, 2021. Shares of Valaris plc (the former U.K. parent company) ceased trading on the OTC Pink Marketplace as of April 28, 2021.

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