Valaris disclosure statement draws objection from agent Citibank

By Sarah Lizee

Olympia, Wash., Dec. 11 – Valaris plc’s disclosure statement drew an objection Thursday from Citibank, NA, the administrative agent of the company’s revolving credit agreement, according to a filing with the U.S. Bankruptcy Court Southern District of Texas.

“There are two key deficiencies with the proposed plans that not only permeate the disclosure in the disclosure statement, but also render the proposed plans patently unconfirmable,” the bank said.

“First, the proposed plans proclaim that they are separate plans of reorganization for each debtor, yet, beyond that window dressing, it is readily apparent that the proposed plans actually improperly ignore the separateness of the debtors.

“Second, the proposed plans are premised upon an ad hoc group exit financing that is outrageously priced and, so far as the RCF agent is aware, was never adequately shopped by the debtors.”

The bank claims the disclosure statement also falls short of providing adequate information on a variety of issues that are of critical importance for creditors.

Valaris is a London-based offshore drilling company. The company filed bankruptcy on Aug. 19 under Chapter 11 case number 20-34114.

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