Ocean Rig UDW: Court gives full force and effect to schemes of arrangement
Ocean Rig UDW announced that the United States Bankruptcy Court for the Southern District of New York has issued an order granting comity and giving full force and effect in the United States to the schemes of arrangement of the company and its subsidiaries, Drill Rigs Holdings, Drillships Financing Holding, and Drillships Ocean Ventures recently sanctioned by The Grand Court of the Cayman Islands. The terms of the restructuring approved by the Cayman Court have therefore been given effect and are enforceable in the United States.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. Terms used but not defined in this announcement shall have the meaning given to them in the Explanatory Statement dated 21 July.