Paragon Offshore filed with the U.S. Bankruptcy Court a notice of commencement of foreign proceeding in relation to its Chapter 11 case.
The notice states, “Consistent with the terms of the proposed Fifth Joint Chapter 11 Plan of Paragon Offshore Plc and Its Affiliated Debtors, filed on May 2, 2017…on May 17, 2017, the board of directors of Paragon Offshore…filed an administration application…with the High Court of Justice, Chancery Division, Companies Court of England and Wales (the ‘English Court’) seeking the appointment by order of the English Court of Neville Barry Kahn…and David Philip Soden…each of Deloitte LLP.”
In addition, “The directors of the Company are seeking an administration order to appoint administrators to, among other things, implement the Proposed Plan, subject to confirmation by the United States Bankruptcy Court for the District of Delaware.” According to a corporate release, Paragon Offshore’s decision to apply for the appointment of administrators is a necessary component of the consensual Plan, under which the Company’s secured creditors and unsecured bondholders will receive equity in a new reorganized parent company. Dean E. Taylor, Paragon Offshore’s president and C.E.O., states, “We believe that the appointment of administrators is an important positive step forward in Paragon’s restructuring process.”
Under administration, Paragon Offshore will continue to conduct business in its normal course. The administrators will assume all powers to manage the affairs of the company; however, Paragon Offshore’s existing board has agreed to remain involved in an advisory capacity to the Administrators until the company emerges from chapter 11, and the existing executive management team will remain responsible for the operational management of the Paragon Offshore group.
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