Hornbeck Offshore Services, Inc. announced that the Company’s Joint Prepackaged Chapter 11 Plan of Reorganization (the “Plan”) was approved by the United States District Court for the Southern District of Texas.
As we previously reported, the Company has access to a U$ 75 million debtor-in-possession term loan facility provided by existing creditors and permitted use of existing cash on hand and cash generated from operations to support the business during the financial restructuring process, which will enable the Company to operate in the ordinary course of business without disruption to its customers, vendors and workforce.
The Plan provides for payment in full of all vendors and employees.
The Company has received subscriptions for a U$ 100 million rights offering with respect to the planned issuance of shares of New Equity, which will result in a U$ 100 million increase in liquidity and is expected to close on the Plan’s effective date.
In addition, the Plan contemplates a post-emergence first-lien senior secured term loan credit facility and second-lien senior secured term loan credit facility, each in an aggregate principal amount to be determined.
The RA contemplates the extinguishment of all pre-petition equity in the Company upon emergence from bankruptcy.