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Possible Ch. 11 for Pacific Drilling

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In Form 6-K filed on August 3, 2017, Pacific Drilling S.A. stated, that previously, on July 5, 2017, the Company announced the launch of a private consent solicitation pursuant to which they solicited the consent of the holders of the 2017 Senior Secured Notes to an extension of the maturity date of the notes to June 1, 2018 in order to give the Company more time to negotiate a refinancing transaction or undertake a holistic restructuring with all of its creditors. The solicitation expired in accordance with its terms on August 2, 2017 without receiving sufficient consents to approve the maturity extension. If the Company is not able to refinance, they may not have sufficient liquidity to meet its debt obligations over the next year. As such, this condition gives rise to substantial doubt about the Company’s ability to continue as a going concern. As a result, the Company, with the assistance of its advisors, are evaluating various alternatives to address liquidity and capital structure, which may include a private restructuring or a negotiated restructuring of debt under the protection of Chapter 11 of the U.S. Bankruptcy Code. Read more on distressed companies.