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Ocean Rig UDW scheduling hearings set, early consent deadline extended
By Caroline Salls
Pittsburgh, June 1 – Ocean Rig UDW Inc. announced Thursday that hearings before the Grand Court of the Cayman Islands at which its scheme companies will seek authority to hold creditor meetings to consider approval of the schemes of arrangement will begin on July 11.
According to a company news release, as of May 29, 94% by debt value of Ocean Rig UDW scheme creditors signed a restructuring support agreement, as have 99.8% by value of Drillships Financing Holding Inc. scheme creditors, 98.5% by value of Drillships Ocean Ventures Inc. scheme creditors and 81.6% by value of Drill Rigs Holdings Inc. (DRH) scheme creditors.
Ocean Rig said operations will continue unaffected, and trade creditors and vendors will continue to be paid in the ordinary course of business and will not be affected by any of the schemes.
If the schemes are sanctioned, Ocean Rig said the scheme companies will be substantially deleveraged through an exchange of $3.7 billion principal amount of debt for new equity, roughly $288 million of cash and $450 million of new secured debt.
The company said the scheme meetings are expected to be held in early August, and the sanction hearing for court approval of the schemes are expected to be held in early September.
Ocean Rig said the hearing for the U.S. court recognition of the provisional liquidation proceedings and schemes was adjourned to Aug. 16 from July 13.
In addition, Ocean rig said the DRH Group, its majority supporting lenders and DRH agreed to extend the early consent deadline for DRH scheme creditors to 5 p.m. ET on June 14.
The $3 million early consent fee will be allocated on the effective date of the DRH scheme.
“We are very pleased to now have a firm timetable to complete restructuring with the overwhelming support of all our constituents,” Ocean Rig chairman and chief executive officer George Economou said in the release.
Ocean Rig is a deepwater driller based in Nicosia, Cyprus.
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