Offshore drilling contractor Valaris, which had filed for bankruptcy in August 2020, said Monday it had on April 30, 2021, successfully completed its financial restructuring and emerged from chapter 11.
The Valaris Group's Plan of Reorganization was approved and confirmed by the United States Bankruptcy Court for the Southern District of Texas on March 3, 2021.
"Valaris now moves forward with a strengthened capital structure, eliminating $7.1 billion of debt and securing a $520 million capital injection by issuing $550 million of new secured notes maturing in 2028. As of April 30, 2021, Valaris had $615 million of available cash, $40 million of restricted cash and $550 million of debt," the company said.
"Today marks an important milestone as the company emerges from chapter 11 with a significantly strengthened capital structure. The overwhelming support of our noteholders, bank lenders, and voting shareholders has been invaluable. I want to thank everyone for their continued confidence in our business," said Tom Burke, President and Chief Executive Officer of Valaris.
"The last 12 months have been challenging from many perspectives. However, I am immensely proud of our employees' hard work and commitment over this period. Our offshore crews and shore-based staff remain focused on delivering safe, efficient and reliable drilling services to our customers."
Early signs of recovery in rig demand
Burke further said that in the current commodity price environment, Valaris is beginning to see the early signs of a recovery in customer demand following the downturn caused by the COVID-19 pandemic.
"With the elimination of more than $7 billion of debt and an injection of significant additional capital, Valaris is best positioned to take advantage of opportunities going forward," he said.
Valaris. which owns 11 drillships, five semisubmersibles and 44 jackups, said the common stock and warrants of the new parent company of the Valaris Group will start trading on the New York Stock Exchange under the ticker symbols VAL and VAL WS, respectively, at market open today, Monday, May 3, 2021. Shares of Valaris plc (the former UK parent company) ("Old Valaris") ceased trading on the OTC Pink Marketplace as of April 28, 2021.
Valaris Limited also announced the appointment of a new, seven-member Board of Directors ("Board"): Elizabeth Leykum; Anton Dibowitz (former CEO of Seadrill, who joins the Valaris Board on July 1, 2021) Dick Fagerstal, Joseph Goldschmid, Deepak Munganahalli, Jay Swent. Thomas Burke (who remains President and Chief Executive Officer) Ms. Leykum has been appointed Chair of the Board.