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Paragon Offshore Objection Filed

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Paragon Offshore’s official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors’ Disclosure Statement.

The committee asserts, “The Disclosure Statement does not contain ‘adequate information’ for creditors to evaluate and vote on the Debtors’ latest Plan. Having failed twice to confirm a ‘reinstatement plan’ in these cases, the Debtors have done a complete about-face and now seek confirmation of a vastly different plan that is premised largely on a previously undisclosed adequate protection claim asserted by the Secured Lenders (the ‘Adequate Protection Claim’), a brand new settlement of, among other things, the very same Adequate Protection Claim, and a vastly diminished valuation of the Debtors’ business.”

In addition, “Another important aspect of the Plan about which the Debtors’ disclosure is lacking is the Debtors’ proposed settlement with Noble pursuant to the Noble Settlement Agreement (the ‘Noble Settlement’). Unlike the new Secured Lender Settlement discussed above, the Noble Settlement is the one significant constant between the Prior Plans and the current Plan. However, nowhere do the Debtors disclose the new developments since confirmation of the Second Amended Plan was denied that call into serious question the continuing bona fides of that settlement.”

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