Since the beginning of 2020, both the global health crisis caused by COVID-19 and the failure to reach international agreement on oil production cuts has caused significant disruption in economies and markets, including a substantial decline in the price of oil. The impact of these market conditions on Pacific Drilling’s business has been direct and significantly negative, resulting in a dramatic reduction in contract drilling demand.
Pacific Drilling announced on October 30, 2020, that it and certain parties of their domestic and international subsidiaries have entered into a restructuring support agreement (the “RSA”) with the largest holders of the company’s outstanding bond debt and filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. This Court-supervised process – which is predicated upon a proposed “prearranged” plan that the bondholders party to the RSA have agreed to support in accordance with the terms and conditions of the RSA – aims to eliminate Pacific Drilling’s bond debt and thereby optimize the Company’s capital structure for a low-commodity-price environment. The Company expects to emerge from Chapter 11 before year-end.
Pacific Drilling has adequate liquidity to ensure that we can purchase supplies, maintain our assets, and pay our employees during this process. With seven of the most advanced high-specification drillships in the world, Pacific Drilling intends to continue our world-wide operations as usual as well as continue to serve customers without interruption.
For more information, please refer to our claims agent website http://cases.primeclerk.com/pacificdrilling2020 or call our dedicated information hotline at +1 877-930-4314 (toll free) or +1 347-897-4073 (international) to address specific questions.
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