Diamond Offshore emerges from Chapter 11 bankruptcy

Offshore drilling contractor Diamond Offshore Drilling and its debtor-affiliates have emerged from their Chapter 11 process after completing a financial reorganization under their joint plan of reorganization.

Illustration; Source: Diamond Offshore

Diamond said that it emerged from Chapter 11 on 23 April 2021. The restructuring provides substantial liquidity for the company, resulting in the equitization of approximately $2.1 billion in senior unsecured note obligations and providing Diamond with over $625 million of newly available capital.

Per the joint plan of reorganization, a newly constituted board of directors of the company was appointed, consisting of chairman Raj Iyer, Neal Goldman, John Hollowell, Ane Launy, Patrick Lowe, and Adam Peakes.

Iyer said: “I am extremely pleased to have such an experienced and uniquely qualified board of directors. They undoubtedly have the necessary financial and business expertise and industry knowledge to oversee Diamond’s post-emergence strategy.

I’ve had the opportunity to engage with the company’s stakeholders to review and evaluate the company’s assets, balance sheet and operational performance and have confidence that Diamond is well-positioned for the future.

I’m looking forward to working with the Diamond team to help drive the company’s strategic plan and achieve sustainable, long-term success while continuing to focus on safe and reliable services for our global customers“.

In connection with its emergence from Chapter 11, Marc Edwards retired as chairman, president, and CEO effective immediately.

Edwards joined the company in March 2014 and has led the Company through its successful Chapter 11 restructuring process.

The company is currently in discussions regarding the appointment of an executive chairman and a CEO. Until a new CEO is appointed, Ronald Woll, the executive VP and COO, will serve as interim CEO in addition to his current position.

Marc Edwards stated: “We commenced the Chapter 11 process to strengthen our capital structure to position Diamond for long-term success and growth. I would like to thank our lenders and other stakeholders, our suppliers and customers and most of all our incredibly talented team of employees, for working together to consummate this restructuring plan to position Diamond for a strong and bright future“.

Iyer concluded: “We believe that our executive leadership team is well-positioned for future success, and I look forward to the next chapter in Diamond’s history“.

To remind, Diamond Offshore started voluntary Chapter 11 proceedings back in April 2020. The company entered into a restructuring agreement to deleverage its balance sheet and emerge from Chapter 11 bankruptcy in late January 2021.