Paragon Offshore Reaches Agreement With Bondholders And Revolver Banks

(RTTNews) - Paragon Offshore plc (PGN) announced it has entered into a Plan Support Agreement with an ad hoc committee representing approximately 77% in the aggregate of holders of Paragon's 6.75% senior unsecured notes maturing July 2022 and 7.25% senior unsecured notes maturing August 2024, to support a restructuring of Paragon's balance sheet. The agreement contemplates that Paragon will implement the restructuring through a plan of reorganization that will be implemented by filing for voluntary relief under Chapter 11 of the United States Bankruptcy Code.

Under the agreement, the company will significantly reduce its debt and receive certain covenant relief. The company said the the transaction, once implemented, will allow it to eliminate more than $1.1 billion of debt and reduce annual cash interest payments by nearly $60 million.

A group comprising approximately 89% of the amounts outstanding under Paragon's Senior Secured Revolving Credit Agreement has also signed the Plan Support Agreement.

Paragon also announced it has entered into a binding term sheet with respect to a definitive settlement agreement with Noble Corp. (NE). Under the agreement, Noble will provide direct bonding in fulfillment of the requirements necessary to challenge tax assessments in Mexico relating to the Paragon Business for the tax years 2005 through 2010. Paragon also has agreed to release Noble, fully and unconditionally, from any and all claims in relation to the separation of Paragon and Noble.