Hornbeck Offshore Services has actually revealed it has actually participated in a pre-packaged restructuring arrangement that entails it applying for volunteer Chapter 11 insolvency.

The news comes as the COVID-19 pandemic has actually taken its toll on international oil need, integrated with the Saudi-Russia oil rate battle which have actually sent out oil rates dropping considering thatJanuary

Covington, Louisiana- based Hornbeck Offshore Services is a leading company of brand-new generation overseas solution vessels to the oil and also gas market mostly in the Gulf of Mexico and also Latin America.

The business claimed the Restructuring Support Agreement was consented to by protected lending institutions holding about 83% of the business’s accumulation protected insolvency and also unprotected noteholders holding about 79% of its accumulated unprotected notes impressive. The arrangement will certainly be executed via a volunteer pre-packaged Chapter 11 instance in the United States Bankruptcy Court for the Southern District of Texas in the coming weeks with a targeted conclusion day before completion of the 2nd quarter of 2020.

HOS claimed the bargain will substantially delever the business’s annual report, supply $75 million in debtor-in-possession funding, permit use money on-hand to proceed typical organization procedures, and also supply $100 countless brand-new equity funding upon appearance. It likewise offers repayment completely of all suppliers and also staff members.

“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,” claimed Todd M. Hornbeck, Chairman, President and also Chief Executive Officer. “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.”