Simpson Thacher represented JPMorgan Chase Bank, N.A., as the administrative agent for the first lien revolving lenders in the Chapter 11 bankruptcy cases of Paragon Offshore plc and various subsidiaries.
The confirmed Fifth Joint Chapter 11 Plan (“Plan”) became effective on July 18, 2017. The Plan, which was supported by substantially all of the secured revolving and term lenders and unsecured noteholders, provided for the (i) elimination of approximately $2.3 billion of debt; (ii) elimination of $58 million in annual cash interest expense; and (iii) framework to right-size the ongoing business with a focus on core operating areas in the North Sea, Middle East and India. The revolving lenders and term lenders received pro rata shares of $410 million in cash, 50% of new equity interests in Paragon Offshore Ltd., the successor company to Paragon Offshore plc (“New Paragon”), 50% of Class A Litigation Trust Interests and 25% of Class B Litigation Trust Interests.
New Paragon is a leading provider of standard specification offshore drilling services. New Paragon’s current fleet includes 32 jackups, including two high specification heavy-duty/harsh environment jackups, four drillships, and one semisubmersible. New Paragon’s primary business is contracting its rigs, related equipment and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a day-rate basis around the world.
The Simpson Thacher team included Sandy Qusba, Elisha Graff, Kathrine McLendon, Soogy Lee, Nick Baker, Edward Linden, Megan Tweed, Ariana Evarts, Alexander Cushman, M. Shin, Leah Barnes and Jon Endean (Restructuring and Bankruptcy); Robert Rabalais, Janet Nadile, Richard Sitton, Brandan Still, Peter Raish, Roald Nashi, Nakita Cuttino, Zachary Banks, Angela Wu and Nadine Thornton (Banking and Credit); Jeongseok Jay Yu (M&A); Lucy Jenkins, James Connor and Jason Lim (UK corporate); David Azarkh (Capital Markets); and Michael Badain (Tax). Summer Associates Devin Ralston, Benjamin Bertan and Edward Grais also provided valuable assistance.