Valaris completes financial restructuring
Bermudian-based offshore drilling company Valaris Ltd has announced that the company and its subsidiaries had successfully completed financial restructuring and emerged from Chapter 11 proceedings in the United States.
The company said Valaris Group’s plan of reorganisation was approved and confirmed by the United States Bankruptcy Court for the Southern District of Texas on March 3.
Valaris Ltd said it now moves forward with a strengthened capital structure, eliminating $7.1 billion of debt and securing a $520 million capital injection by issuing $550 million of new secured notes maturing in 2028.
As of April 30, Valaris said it had $615 million of available cash, $40 million of restricted cash and $550 million of debt.
Tom Burke, president and chief executive officer of Valaris, said: "Today marks an important milestone as the company emerges from chapter 11 with a significantly strengthened capital structure. The overwhelming support of our noteholders, bank lenders and voting shareholders has been invaluable. I want to thank everyone for their continued confidence in our business.
"The last 12 months have been challenging from many perspectives. However, I am immensely proud of our employees' hard work and commitment over this period. Our offshore crews and shore-based staff remain focused on delivering safe, efficient and reliable drilling services to our customers."
He added: "In the current commodity price environment, we are beginning to see the early signs of a recovery in customer demand following the downturn caused by the Covid-19 pandemic.
“With the elimination of more than $7 billion of debt and an injection of significant additional capital, Valaris is best positioned to take advantage of opportunities going forward."
Valaris said it emerges with the largest fleet of modern, high-specification assets in the industry, adding that the company's 11 drillships, five semi-submersibles and 44 jack-ups are capable of meeting a broad spectrum of customers' requirements across all geographies.
The common stock and warrants of the new parent company of the Valaris Group commenced trading on the New York Stock Exchange under the ticker symbols VAL and VAL WS, respectively, at market open today, the company said. Shares of Valaris plc (the former UK parent company) ceased trading on the OTC Pink Marketplace as of April 28.
Valaris Ltd also announced the appointment of a new, seven-member board of directors: Elizabeth Leykum, Anton Dibowitz who joins the board on July 1, Dick Fagerstal, Joseph Goldschmid, Deepak Munganahalli, Jay Swent, and Mr Burke, who remains president and CEO.
Ms Leykum has been appointed chairwoman of the board, the company said.