LaForta Gestao has approval for bid procedures for drilling rig

Chicago, Sept. 7 – LaForta Gestao e Investimentos Sociedade Unipessoal LDA received court approval for its bid procedures for its only asset, La Muralla IV, an ultra-deepwater semi-submersible drilling rig, according to an order filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The hearing was held on Sept. 6, and the deadlines have not been modified from the proposed timeline.

Under the bid procedures, bids are due by 1 p.m. ET on Oct. 26. An auction, if needed, will be held on Nov. 2, and a sale hearing will take place on Nov. 15.

The company is also seeking approval to transfer to the winning bidder any contracts the debtor entered into post-petition that are not terminated on or before the sale closes.

The company noted that it negotiated with backstop lenders to include credit bid caps to ensure the nearly $1 billion in debtor-in-possession lender and noteholder claims do not chill bidding. The caps will be disclosed by Sept. 27. The backstop lenders shall identify the applicable credit bid cap by Oct. 24.

The backstop lenders also have the option to set a floor price.

The Funchal, Portugal-based ultra-deepwater semi-submersible drilling rig owner is a wholly owned subsidiary of non-debtor Offshore Drilling Holding SA. It filed bankruptcy on June 16 under Chapter 11 case number 22-90126.

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