Ocean Rig UDW says Cayman Court has sanctioned schemes of arrangement
Ocean Rig UDW announced that the Grand Court of the Cayman Islands has sanctioned the schemes of arrangements of the Company and its subsidiaries, Drill Rigs Holdings, Drillships Financing Holding, and Drillships Ocean Ventures. The terms of the restructuring have therefore been approved by the Cayman Court. The Scheme Companies have filed the sanction orders with the Registrar. Therefore, in accordance with the requirements of the Schemes, the Lodgment Date has now occurred. A hearing has been scheduled for September 20 by the U.S. Bankruptcy Court to consider the JPLs' motion for entry of an order giving full force and effect to the Schemes in the United States. The deadline for filing objections to the Enforcement Motion was September 8. No objections to the Enforcement Motion are pending. The Schemes affect only financial indebtedness. Operations will continue unaffected. Trade creditors and vendors will continue to be paid in the ordinary course of business and will not be affected by any of the Schemes. Once the Restructuring Effective Date has occurred, the Scheme Companies will be substantially deleveraged through an exchange of approximately $3.7B principal amount of debt for (i) new equity of the company, (ii) approximately $288M of cash, and (iii) $450M of new secured debt.