Photo: Noble Don Taylor drillship; Source: Noble Corp.

Bankruptcy court approves Noble’s reorganization plan

Offshore drilling contractor Noble Holding Corporation has received approval from a bankruptcy court for its reorganization plan.

Noble Corp. filed for Chapter 11 bankruptcy protection to restructure its debt in early August 2020 following a severe downturn in commodity prices amid Covid-19 pandemic.

The company then in early November 2020 changed its name to Noble Holding Corporation plc to allow the ultimate parent company that emerges from Chapter 11 reorganization to use the name “Noble Corporation plc.”

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In an update on Monday, Noble Holding Corporation said that the U.S. Bankruptcy Court for the Southern District of Texas has issued an order approving the company’s joint plan of reorganization.

The company said it is working towards emergence as soon as possible upon receipt of certain regulatory approvals, which could be received late this year or early 2021.

According to Noble, the plan received widespread support from creditors and upon emergence will equitize all outstanding bond debt, which currently totals $3.4 billion.

The plan will also provide for a new $200 million investment in the form of second-lien notes as well as a new $675 million secured credit facility.

Robert W. Eifler, Noble President and Chief Executive Officer, stated, “We are pleased to have reached this critical milestone and are eager to continue executing on our strategy. I would like to thank our creditors, customers, vendors, advisors and employees, whose support throughout this process has been critical to reaching a consensual and efficient restructuring while maintaining our industry-leading operations.

“We look forward to emerging with a significantly improved balance sheet and remain committed to delivering the operational excellence that our customers have come to expect from Noble”.

Earlier this month, Noble decided to sell five of its cold-stacked floating drilling rigs.

The deals were signed for two drillships and three semi-submersibles. Both drillships were built in 2011, two semi-subs were built in 1999, and the third one in 1980.