Valaris announced that it has successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy effective 30 April.
The Valaris Group’s Plan of Reorganization was approved and confirmed by the US Bankruptcy Court for the Southern District of Texas on 3 March. 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 30 April, Valaris had $615 million of available cash, $40 million of restricted cash and $550 million of debt.
“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, Valaris President and CEO. “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.”
Mr Burke continued: “In the current commodity price environment, we are 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.”