Since the beginning of 2020, both the global health crisis caused by COVID-19 and the failure to reach international agreement on oil production cuts has caused significant disruption in economies and markets, including a substantial decline in the price of oil. The impact of these market conditions on Pacific Drilling’s business has been direct and significantly negative, resulting in a dramatic reduction in contract drilling demand.

Pacific Drilling announced on October 30, 2020, that it and certain of our domestic and international subsidiaries had entered into a restructuring support agreement (the “RSA”) with the largest holders of the company’s outstanding bond debt and filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. This Court-supervised process – which was predicated upon a proposed “prearranged” plan that the bondholders party to the RSA had agreed to support in accordance with the terms and conditions of the RSA – aimed to eliminate Pacific Drilling’s bond debt and thereby optimize the Company’s capital structure for a low-commodity-price environment.

On December 31, 2020, the Company announced that it and each of its debtor affiliates have emerged from the Chapter 11 process, signaling the successful completion of the Company’s balance-sheet restructuring and the implementation of the Modified First AmendedJoint Plan of Reorganization of Pacific Drilling S.A. and its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code (the “Plan”) confirmed by the United States Bankruptcy Court for the Southern District of Texas on December 21, 2020.

Pursuant to the Plan, all of the Company’s outstanding common shares were deemed to have no value and will receive no recovery. In accordance with the restructuring transactions contemplated by the Plan, upon emergence, the Company has a new parent company, Pacific Drilling Company LLC, a Cayman Islands limited liability company (the “reorganized Company”), the equity of which is owned by former creditors of the Company and its debtor affiliates.

After emergence, the reorganized Company now operates with a substantially de-levered capital structure, due to the elimination of more than $1 billion of funded debt obligations pursuant to the Plan. 

With seven of the most advanced high-specification drillships in the world, Pacific Drilling has continued our world-wide operations as usual and served customers without interruption. 

More Information

For more information, please refer to our claims agent website or call our dedicated information hotline at +1 877-930-4314 (toll free) or +1 347-897-4073 (international) to address specific questions.

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