Louisiana-based OSV owner Hornbeck Offshore Services has emerged from Chapter 11 pursuant to its ‘Joint Prepackaged Chapter 11 Plan of Reorganisation’
With one of the largest fleets of offshore support vessels, multi-purpose support vessels and flotels in the US, Hornbeck Offshore Services (HOS) has implemented the reorganisation plan outlined in its Restructuring Support Agreement negotiated with its lenders and note holders.
"The quick completion of our reorganisation and emergence from Chapter 11 is a significant achievement, particularly given the currently very challenging economic environment," said HOS chairman, president and chief executive Todd M Hornbeck. “We will now go forward with a stronger financial foundation and are well positioned for long-term success.”
In line with its plan, all of Hornbeck Offshore’s general unsecured creditors, including trade creditors and vendors, were paid in full and its debtor-in-possession financing was converted into a new senior secured exit facility. Additionally, the company’s pre-petition secured loans and unsecured senior notes were cancelled in exchange for new secured debt, new equity, new equity rights and pre-petition equity interests were extinguished.
After closing on the common stock rights offering, HOS received a US$100M cash infusion of new equity capital led by the Special Opportunities Funds of Ares Management and funds managed by Whitebox Advisors and Highbridge Capital Management.
“Post-emergence, we have clear alignment with a strong and well-capitalised group of lead shareholders on a shared vision for the company’s future,” continued Mr Hornbeck.
As part of the plan, HOS has appointed a new board comprising Mr Hornbeck as chairman, Evan Behrens, Kurt M Cellar, former Louisiana Governor Bobby Jindal, Kevin O Meyers, PhD, Admiral John Richardson, USN (Ret) and John T Rynd, one-time chief executive of Tidewater.
HOS also announced that Larry D Hornbeck has been named chairman emeritus.