Diamond Offshore seeks 60-day extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., Nov. 23 – Diamond Offshore Drilling, Inc. is seeking a 60-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Friday in the U.S. Bankruptcy Court for the Southern District of Texas.

Specifically, the company is asking the court to extend the plan filing period through Jan. 22 and the solicitation period through March 22.

Since the first exclusivity extension, the debtors said they have engaged in extensive good faith negotiations with key stakeholders, including the revolving credit facility agent, a steering group of revolver lenders, the steering committee of the ad hoc group of senior noteholders and the official committee of unsecured creditors.

Following these discussions, the debtors believe they are close to an agreement on a consensual restructuring with the revolver agent and the steering groups on the terms of a Chapter 11 plan that would be subject to the revolver lenders’ and ad hoc group of senior noteholders’ internal approval process and definitive documentation.

The company said the extension will provide the debtors enough time to document and solicit the plan under negotiation, implement a substantially consensual restructuring and emerge from Chapter 11, all without the potential disruption or distraction of competing plan proposals not supported by the debtors’ major creditor constituencies.

The offshore oil and gas drilling contractor is based in Houston. The company filed bankruptcy on April 26, 2020 under Chapter 11 case number 20-32307.

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