Offshore drilling contractor Pacific Drilling, which last month filed for Chapter 11 Bankruptcy, on Tuesday said that the United States Bankruptcy Court for the Southern District of Texas had confirmed its debt reorganization plan.
The driller in November filed for Chapter 11 bankruptcy with the aim to eliminate $1.1 billion debt.
Bernie G. Wolford, Pacific Drilling's Chief Executive Officer said: "The Court’s confirmation of our Plan represents an important milestone in our progress towards emergence by year-end with a fully de-levered balance sheet and the capacity to deliver world class drilling services with our fleet of 6th and 7th generation drillships."
In accordance with the confirmed plan, the Company will de-lever its balance sheet by eliminating over $1 billion of funded debt obligations and have access to additional liquidity to operate going forward with approximately $100 million in cash on hand at emergence and an undrawn $80 million senior secured delayed draw term loan exit facility, it said.