Covington, La., based Hornbeck Offshore Services,Inc (NYSE: HOS, OTCQB: HOSS) records that it has actually currently gotten to a restructuring assistance handle safeguarded loan providers as well as unsafe noteholders on an annual report restructuring of the business anticipated to be executed via a volunteer pre-packaged Chapter 11 situation in the United States Bankruptcy Court for the Southern District of Texas
The business claims it anticipates the pre-packaged Chapter 11 reconstruction to be “completed very quickly” with the assistance of its financial institutions.
It claims that both before as well as succeeding to the anticipated Chapter 11 declaring, it will certainly have adequate liquidity to proceed procedures, satisfy all functional repayment responsibilities as well as sustain its service, as well as will certainly remain to run in the normal program of service without interruption to its consumers, suppliers as well as labor force.
The restructuring assistance arrangement considers a $75 million debtor-in-possession term financing center supplied by existing financial institutions as well as allowed use existing cash money handy as well as cash money produced from procedures to sustain business throughout the monetary restructuring procedure, which will certainly make it possible for the business to run in the normal program of service without interruption to its consumers, suppliers as well as labor force. The arrangement offers repayment completely of all suppliers as well as workers.
Commenting on the business’s strategies, Todd M. Hornbeck, Chairman, President as well as Chief Executive Officer mentioned, “The COVID-19 pandemic and the recent drop in oil prices due to an acute global supply-demand imbalance have significantly impacted the industries we serve, making an already challenging environment for the company even more difficult. The shared objectives of the company and our creditors are to meaningfully reduce the company’s financial leverage on a consensual basis and source new capital to position the company for future growth. I want to thank our secured lenders and unsecured noteholders for joining together with us on a game plan for an expedited court-supervised financial restructuring process. This consensual approach to reorganization and recapitalization is in the best long-term interest of our company, as it will enable us to take advantage of new opportunities while continuing to support our customers, retain our employees and pay our vendors.”
More HERE
