Luxembourg-based Pacific Drilling and 18 affiliates have filed for Chapter 11 bankruptcy protection in Houston federal court.
Pacific Drilling filed its voluntary petition Friday with plans to wipe out $1.1 billion in debt through a restructuring support agreement it has reached with an ad hoc group of the largest noteholders of the company’s outstanding bond debt. Under the terms of the RSA, Pacific Drilling will eliminate the debt through the cancellation and exchange of debt for new equity in the reorganized company.
The company, which cited the one-two punch of the COVID-19 crisis and depressed oil prices when it filed, turned to Latham & Watkins to handle the restructuring. Along with lawyers from Latham’s New York office, Houston partner Justin Stolte is leading the Latham team guiding the company through its restructuring.
Other Houston lawyers from Latham involved in the bankruptcy include partners Trevor Wommack, David Miller, Ryan Maierson, Tim Fenn and Bryant Lee and associates Ashley Nguyen, Jack Traylor, Whitley Johnson, Om Pandya, Erin Lee, Anthony Tan, Joseph Kmetz and Jared Grimley.
Houston bankruptcy litigation partner Joseph Bain of Jones Walker is also representing Pacific Drilling.
Lawyers from Akin Gump’s New York and Washington, D.C. offices are representing the noteholders in the bankruptcy.
The financial advisors are Greenhill & Co. for Pacific Drilling and Houlihan Lokey for the notholders. AlixPartners is serving as Pacific Drilling’s restructuring advisor.
Pacific Drilling says it plans to emerge from bankruptcy by the end of the year with access to new capital with an $80 million exit facility as well as approximately $100 million in cash.
A number of Houston companies are listed among Pacific Drilling’s top 30 unsecured creditors. National Oilwell Varco is the largest creditor, which is owed $72,704. Other Houston area creditors inclue 3C Metal USA, Kongsberg Maritime, Gulf Copper & Manufacturing Corp (Port Arthur), Bureau Veritas North America, Ameriforge Corp, Wellbore Integrity Solutions and ABS Americas.
The case is in U.S. Bankruptcy Judge David Jones’ court in the Southern District of Texas. The case number is 20-35212.