Milbank has successfully represented the Administrative Agent under a senior secured credit facility in connection with the restructuring of Pacific Drilling S.A. and its affiliates (“Pacific Drilling”). Pacific Drilling employs a fleet of high-specification drillships and specializes in ultra-deepwater and complex well construction services within the offshore drilling sector.
On November 12, 2017, Pacific Drilling filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of New York.
Pacific Drilling’s Fourth Amended Joint Plan of Reorganization (the “Plan”) was confirmed on October 31, 2018, putting to rest a contentious restructuring process that lasted for well over a year. Pacific Drilling is expected to emerge from chapter 11 in November 2018.
The Plan provides for the comprehensive recapitalization of Pacific Drilling through the issuance of $750 million of new first lien notes, the issuance of $250 million of new second lien PIK toggle notes, a $460 million equity rights offering, and a $40 million private placement. Milbank was instrumental in advancing the rights of the SSCF lenders, who will receive payment of their claims in full in cash, including post-petition interest calculated at the default rate.
The Milbank team was led by Financial Restructuring partners Dennis Dunne and Tyson Lomazow, and included Financial Restructuring and Litigation partner Andrew Leblanc, Financial Restructuring associates Matthew Brod and Rachael Siegel, and Leveraged Finance special counsel Meir Hornung.
