Today, August 13, 2015, Hercules Offshore, Inc. and 14 of its affiliates filed a prepackaged chapter 11 bankruptcy case in the United States Bankruptcy Court for the District of Delaware. Hercules and its affiates are, according to the petition, providers of shallow-water drilling and marine services to the oil and natural gas exploration and production industry globally. The cases have been assigned to the Honorable Kevin J. Carey and are docketed as case no. 15-11685.
The Debtors' senior vice president and CFO, Troy L. Carson, filed an affidavit in suport of the prepack. According to Mr. Carson, the prepack will convert approximately $1.2 billion in debt to equity, raise approximately $450 million of new capital, and provide an opportunity for existing equity holders to receive a distribution (despite them being $500 million out of the money). Mr. Carson says that that debtors have sufficient unencumbered assets to complete the restructuring without need for a DIP loan.
Mr. Carson notes that 99% of the debtors' key stake holders - the Class 3 Senior Note Claims - voted in favor of the proposed plan.
As part of their various requests for first-day relief, the debtors are seeking authority to pay various general unsecured creditors in the ordinary course of business.
