BankruptcyData’s detailed analysis and summary of Paragon Offshore’ Fifth Joint Chapter 11 Plan, dated June 5, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on June 7, 2017; however, an effective date has not yet been issued.
BankruptcyData notes, “Under the Plan, approximately $2.4 billion of previously existing debt will be eliminated in exchange for a combination of cash and to-be-issued new equity. The Noteholders will receive $105 million in cash and an estimated 50% of the new, to-be-issued common equity, subject to dilution.”
The Plan Summary continues, “The Valuation Analysis estimates the assumed combined range of the Enterprise Value of the Reorganized Debtors of between $550 million and $675 million and assumed adjusted net debt of $107 million (assuming a pro forma debt balance of $249 million less cash balance of $166 million less $27 million of restricted cash at Prospector and plus $63 million of operational cash burn through the August 2019 liquidity low point in the Projections). The Valuation Analysis has an imputed estimate of the range of equity value for the Reorganized Debtors between approximately $443 million and $568 million, with a midpoint estimate of $505 million.”
BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Paragon Offshore’s February 14, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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