Hornbeck Offshore expects to exit bankruptcy in the next few months

By Caroline Salls

Pittsburgh, June 26 – Hornbeck Offshore Services, Inc. said in a Friday news release that it expects to emerge from bankruptcy in the next few months upon clearing various governmental approvals.

As previously reported, the company’s pre-packaged plan of reorganization was confirmed on June 22 by the U.S. Bankruptcy Court for the Southern District of Texas.

Hornbeck said the plan is supported by 100% of voting first-lien creditors, 99.9% of second-lien creditors and 99.8% of unsecured noteholders.

“The court’s approval of our plan of reorganization is another significant milestone in our restructuring process, and we appreciate the overwhelming show of support from our lenders and noteholders,” chief executive officer Todd M. Hornbeck said in the release.

“We are on track to quickly complete our restructuring and emerge with a strengthened financial foundation and well positioned for long-term success.”

The plan provides for payment in full of all vendors and employees.

Hornbeck said it has received subscriptions for a $100 million rights offering related to the planned issuance of shares of new equity, which will result in a $100 million increase in liquidity and is expected to close on the plan effective date.

In addition, the plan calls for a post-emergence first-lien senior secured term loan credit facility and second-lien senior secured term loan credit facility, each in a principal amount to be determined.

All pre-bankruptcy equity will be extinguished.

Hornbeck is a Covington, La.-based provider of offshore supply vessels primarily in the Gulf of Mexico and Latin America. The company filed bankruptcy on May 19 under Chapter 11 case number 20-32679.

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