Paragon Offshore announced that the High Court of Justice, Chancery Division, Companies Court of England and Wales granted an order appointing two partners of Deloitte LLP as administrators of the Company (“Joint Administrators”).
As previously disclosed by the Company, the appointment of the Joint Administrators is a necessary component of its Chapter 11 Plan filed with the U.S. Bankruptcy Court, under which Paragon Offshore’s existing equity is deemed worthless and the Company’s secured creditors and unsecured bondholders will receive equity in a new reorganized parent company. Assuming the Court confirms the Plan in June 2017, Paragon Offshore anticipates July 2017 emergence; however, this timing is subject to the completion of certain conditions precedent to emergence including, among other things, the reorganization of the corporate structure of Paragon Offshore and its subsidiaries.
Under administration, Paragon Offshore will continue to conduct business in its normal course. The Joint 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 Joint Administrators until the Company emerges from Chapter 11 protection.
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