Paragon Offshore Begins Proceedings Under Chapter 11 Of U.S. Bankruptcy Code

(RTTNews) - Paragon Offshore plc (PGNPF.OB) announced that the company and certain of its subsidiaries have elected to commence proceedings under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court in the District of Delaware.

As previously announced on February 12, 2016, Paragon entered into a Plan Support Agreement or the "PSA" to support a restructuring of Paragon's balance sheet.

As of February 15, 2016,the PSA has been signed by an ad hoc committee representing approximately 77% in the aggregate of holders of its senior unsecured notes and a group comprising approximately 96% of the amounts outstanding under Paragon's Senior Secured Revolving Credit Agreement. An additional member of the Revolving Credit Agreement group signed the PSA subsequent to the February 12, 2016 announcement.

Approval of the transaction by the Revolver Lenders and the Bondholders will require that 2/3 in principal amount and 1/2 in number of those voting in each class to approve the transaction.

The company also announced that it has filed certain "first-day" motions with the court to facilitate operating in the normal course throughout the Chapter 11 process. Paragon expects to maintain sufficient liquidity throughout the restructuring process to maintain its business operations.