Hornbeck Offshore Services has announced United States District Court for the Southern District of Texas has approved the company’s Joint Prepackaged Chapter 11 Plan of Reorganization. The company has further added that the plan received 100% of Voting in class 4, 99.99% of voting in class 5 Second and 99.8% of voting class 7 unsecured noted claims in the amount.
After the approval, the company is expected to emerge from the state of bankruptcy in the coming few months. The company has further added that it has access to a $75 million debtor in possession term loan facility provided by the financiers and creditors for the permitted use of cash generated from operations of the company during the financial restructuring of the business.
Hornbeck Offshore Services is a leading provider of offshore vessels primarily in the Gulf of Latin America and the Gulf of Mexico.
The company has further added that it has also received the subscriptions for a $100 Million rights offering with respect to the planned insurance of New Equity. Furthermore, the plan also contemplates all the pre-petition in the company upon emergence from bankruptcy.
Chief Executive Officer of Hornbeck Offshore Services, Todd Hornbeck said, “The Court’s approval of our Plan of Reorganization is another significant milestone in our restructuring process and we appreciate the overwhelming show of support from our lenders and noteholders.”
“We are on-track to quickly complete our restructuring and emerge with a strengthened financial foundation and well positioned for long-term success,” CEO of Hornbeck Offshore Services Todd M. Horbneck further added in the statement.
“The Company has experienced no interruption in service from vendors or employees on account of the restructuring process. We appreciate the strong support we have received from these important constituents,” Mr. Hornbeck concluded.