Hercules Offshore Inc. and certain U.S. subsidiaries filed voluntary Chapter 11 bankruptcy petitions, the company said June 6. Lenders holding about 99.7% of its first-lien debt voted on the prepackaged bankruptcy plan.
The company is still soliciting votes from its shareholders. The Chapter 11 case is being heard in the United States Bankruptcy Court for the District of Delaware, the company said.
All of Hercules Offshore’s assets will be marketed for sale, and those left unsold when the Chapter 11 process is completed will be placed into a wind-down vehicle to ensure their continued, safe operation until sales are finalized.
Hercules will operate its rigs and vessels as usual throughout the sale process.
Under the prepackaged plan, unsecured creditors will be paid in full, either in ordinary course or when the Chapter 11 process is completed.
Shareholders will receive cash recoveries and interests in the wind-down vehicle if they vote as a class to accept the plan, or just interests in the wind-down vehicle if the class votes against the plan.
The lenders also will receive cash payments largely dependent on the success of the sale process, the company said.
Akin Gump Strauss Hauer & Feld LLP is Hercules Offshore’s legal counsel; PJT Partners is its financial adviser; and FTI Consulting is its restructuring adviser.
The company’s international subsidiaries will be part of the sale process even though they are not included as part of the Chapter 11 cases, Hercules Offshore said.
Hercules Offshore Inc. is based in Houston.
Recommended Reading
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.
TotalEnergies Buys Majority Stake in Ecoslops Provence JV
2024-03-01 - TotalEnergies bought out its joint venture partner to become the sole shareholder in cleantech venture Ecoslops Provence.
TotalEnergies, Sinopec to Develop SAF Unit in China
2024-03-26 - TotalEnergies and Sinopec’s production unit will have the capacity to produce 230,000 tons of sustainable aviation fuel per year.
TotalEnergies Expanding Orange Basin Presence
2024-03-06 - The new acreage offshore South Africa is on trend with the Venus discovery offshore Namibia.
TotalEnergies Cements Oman Partnership with Marsa LNG Project
2024-04-22 - Marsa LNG is expected to start production by first quarter 2028 with TotalEnergies holding 80% interest in the project and Oman National Oil Co. holding 20%.