Milbank has successfully represented the ad hoc committee of unsecured noteholders of Hornbeck Offshore Services in connection with a restructuring of Hornbeck’s debt. Hornbeck is a leading provider of marine transportation services to exploration and production, oilfield service, offshore construction and military customers in the United States, Gulf of Mexico, and select international markets. The ad hoc committee holds over $450 million of Hornbeck’s unsecured senior notes.
On March 31, 2020, Hornbeck announced that it was in the process of negotiating and finalizing a restructuring agreement with its creditors, including the ad hoc committee, that would implement a consensual balance sheet restructuring through a prepackaged chapter 11 plan in the US Bankruptcy Court for the Southern District of Texas.
On June 29, 2020, the Court confirmed Hornbeck’s plan of reorganization, which came only 31 days after the initial bankruptcy filing on May 19. The plan is supported by nearly 100% of the company’s first and second lien creditors and unsecured noteholders. Under the plan, holders of unsecured notes worth almost $675 million will get 0.3% equity and new warrants representing approximately 8.5% of the outstanding equity on a fully-diluted basis.
The Milbank team was led by partners Gerard Uzzi, Eric Stodola (Financial Restructuring), Brett Goldblatt (Corporate), and James Ball, Jr. (Capital Markets) and included partner Manan Shah (Executive Compensation and Employee Benefits), special counsel Sam Badawi (Capital Markets) and associates Natalie Chitayat (Corporate), Christina Skaliks (Executive Compensation and Employee Benefits) and Jon Sorger (Executive Compensation and Employee Benefits).
