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Paragon Bankruptcy Reorganization Plan Effective

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Paragon Offshore filed with the U.S. Bankruptcy Court a second amended Supplement to its Fifth Joint Chapter 11 Plan. The Supplement contains the following documents: Exhibit A-1: articles of association of reorganized Paragon Offshore; Exhibit A-2: articles of association of reorganized Paragon Offshore redline; Exhibit B-1: shareholders agreement; Exhibit B-2: shareholders agreement redline; Exhibit C: directors of reorganized Paragon Offshore; Exhibit D-1: amended form of U.K. implementation agreement; Exhibit D-2: U.K. implementation agreement redline; Exhibit E-1: litigation trust agreement; Exhibit E-2: litigation trust agreement redline; Exhibit F-1: take back debt agreement; Exhibit F-2: take back debt agreement redline; Exhibit G-1: new letter of credit agreement; Exhibit G-2: new letter of credit agreement redline; Exhibit H-1: existing L/C escrow agreement; Exhibit H-2: existing L/C escrow agreement redline; Exhibit I-1: registration rights agreement; Exhibit I-2: registration rights agreement redline and Exhibit J: management agreement.

Paragon Offshore’s Fifth Joint Chapter 11 Plan of Reorganization subsequently became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on June 7, 2017. According to a corporate release, the Plan substantially de-levers the Company’s ongoing business, eliminating approximately $2.3 billion of secured and unsecured debt.

New Paragon Offshore emerges with eight rigs currently operating plus a ninth rig expected to commence operations in August 2017, approximately $165 million of available cash on its balance sheet and $85 million of new debt. Dean E. Taylor, interim president and C.E.O., states, “With a clean balance sheet and good liquidity, we emerge from bankruptcy as a stronger company – more focused on our core operating areas in the North Sea, Middle East, and India and better positioned to compete in the recovering, but still very challenging, offshore drilling industry.”

The Company also named a new board of directors with James Swent, a director of Energy XXI Gulf Coast and retired E.V.P. and C.F.O. of ENSCO, will serve as chairman. The Company also noted that its new equity will not be listed on an exchange, nor will the Company file any further reports with the SEC. This offshore drilling rig provider filed for Chapter 11 protection on February 14, 2016, listing $3.3 billion in pre-petition assets.

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