Hercules Offshore Files For Chapter 11 Bankruptcy - Quick Facts

(RTTNews) - Hercules Offshore, Inc. (HERO) said it has filed a pre-packaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code to continue its financial restructuring of the company. The Chapter 11 reorganization is expected to conclude in 45-60 days.

The company expects that, among other things, it will receive court authority to pay employee wages and benefits without interruption and continue to pay trade creditors and suppliers in the ordinary course of business.

As announced on July 13, the pre-packaged plan provides a substantial deleveraging transaction following which more than $1.2 billion of the company's outstanding senior notes would be converted to 96.9 percent of new common equity.

Further, $450 million in new debt financing would be provided by those holders of the senior notes who wish to participate on a pro rata basis, which would fully fund the remaining construction cost of the Hercules Highlander and provide additional liquidity to fund the company's operations.

Hercules Offshore said the filing follows the completion of the solicitation process of the company's senior noteholders.

The solicitation process led to overwhelming approval of the pre-packaged plan presented by the company. More than 300 senior noteholders with aggregate holdings in excess of $1.2 billion of senior notes have voted to accept the plan while only two holders with $320,000 of the senior notes voted against the plan.