U.S.-based offshore support vessel provider Hornbeck Offshore Services said Friday it had completed its reorganization and emerged from Chapter 11 Bankruptcy.
The company had in April struck a comprehensive balance sheet restructuring support agreement with its lenders, to be implemented through a prepackaged chapter 11 filing in May in the Southern District of Texas.
Hornbeck, which provides offshore services in the Gulf of Mexico and Latin America, said Friday that it had on September 4, 2020, emerged from Chapter 11 under its previously announced reorganization plan.
Todd M. Hornbeck, Chairman, President and CEO of Hornbeck Offshore Services said: "The quick completion of our reorganization and emergence from Chapter 11 is a significant achievement, particularly given the currently very challenging economic environment. I want to thank our employees, customers, vendors, lenders, and noteholders for their steadfast support, which allowed us to maintain normal operations during this process. We will now go forward with a stronger financial foundation and are well-positioned for long-term success."
According to Hornbeck, pursuant to the plan, all of the company's pre-petition equity interests were extinguished, all general unsecured creditors, including the company's trade creditors and vendors, were paid in full in the ordinary course of business; the company's debtor-in-possession financing was converted into a new senior secured exit facility; all of the company's pre-petition secured loans and unsecured senior notes were canceled in exchange for new secured debt, new equity, and new equity rights (or cash, if applicable).
In addition, Hornbeck Offshore said, the company closed on the common stock rights offering contemplated by the plan, which resulted in a $100 million cash infusion of new equity capital led by the Special Opportunities Funds of Ares Management, as well as funds managed by Whitebox Advisors and Highbridge Capital Management.
"Post-emergence, we have clear alignment with a strong and well-capitalized group of lead shareholders on a shared vision for the Company's future," Hornbeck CEO said.
New Board of directors
As part of the plan, a new Board of Directors was appointed. The new board of directors is comprised of Todd M. Hornbeck (Chairman), Evan Behrens, Kurt M. Cellar, former Louisiana Governor Bobby Jindal, Kevin O. Meyers, Ph.D., Admiral John Richardson, USN (Ret), and John T. Rynd.
Hornbeck Offshore Services also announced that Larry D. Hornbeck was named Chairman Emeritus.