HOUSTON, July 13, 2015 /PRNewswire/ -- Hercules
Offshore, Inc. (Nasdaq: HERO) (the "Company" or "Hercules"),
announced today that it commenced a solicitation of votes for a
prepackaged plan of reorganization from holders of its 10.25%
senior notes due 2019, 8.75% senior notes due 2021, 7.5% senior
notes due 2021, 6.75% senior notes due 2022, 7.375% senior notes
due 2018 and 3.375% convertible senior notes due 2038 (the
"Noteholders"). Votes on the prepackaged plan must be received by
Prime Clerk, the Company's voting agent, by August 12, 2015, unless the deadline is extended.
The record date for voting has been set for July 13, 2015. Solicitation materials will be
mailed on or about July 13, 2015 to
creditors of record that are entitled to vote.
The prepackaged plan of reorganization (the "Plan") provides
that claims of trade creditors, suppliers and employees will be
paid in full.
As previously disclosed, on June 17,
2015 the Company entered into a restructuring support
agreement (the "Agreement") with Noteholders who held approximately
67% of the aggregate outstanding principal amount of the Company's
notes. The terms of the consensual financial restructuring would
support a substantial deleveraging transaction pursuant to which
approximately $1.2 billion of the
Company's outstanding notes would be converted to 96.9% of new
common equity, and $450 million in
new backstop debt financing would be provided, which would fully
fund the remaining construction cost of the Hercules
Highlander and provide additional liquidity to fund the
Company's operations. The Company's current shareholders, despite
being substantially "out of the money" as described in the Plan,
would have the opportunity to receive their pro rata portion of the
remaining 3.1% of the new common equity, as well as certain
warrants described in Plan and the Agreement, subject to the
requirements of the Plan. The Company and the consenting
Noteholders agreed to complete the restructuring through a
prepackaged plan of reorganization. Assuming the Company receives
the required acceptances, the Company intends to commence a
prepackaged Chapter 11 case shortly after the conclusion of the
solicitation period.
The Company recommends that Noteholders refer to the information
and the limitations and qualifications discussed in the
Solicitation and Disclosure Statement, including the attached Plan.
Information contained in the Solicitation and Disclosure Statement,
including the attached Plan, is subject to change, whether as a
result of amendments, actions of third parties or otherwise. There
can be no assurances that the Plan will be approved or confirmed
pursuant to the Bankruptcy Code.
This press release is for information purposes only and is not a
solicitation to accept or reject the proposed prepackaged plan of
reorganization referred to herein or an offer to sell or a
solicitation of an offer to buy any securities of the Company. Any
solicitation or offer to sell will be made pursuant to and in
accordance with the Solicitation and Disclosure Statement
distributed to Noteholders and applicable law.
Noteholders seeking additional information about the balloting
process may contact Prime Clerk, LLC, by phone at +1 (844) 241-2770
(Domestic, Toll Free) or +1 (929) 342-0757 (International), or by
email at herculesballots@primeclerk.com. A form of the Solicitation
and Disclosure Statement and Plan of Reorganization, which provides
a substantial description of the proposed reorganization, can be
accessed via the Internet at
http://cases.primeclerk.com/hercules.
About Hercules Offshore, Inc.
Headquartered in Houston,
Hercules Offshore, Inc. operates a fleet of 27 jackup rigs,
including one rig under construction, and 24 liftboats. The Company
offers a range of services to oil and gas producers to meet their
needs during drilling, well service, platform inspection,
maintenance, and decommissioning operations in several key shallow
water provinces around the world. For more information, please
visit our website at http://www.herculesoffshore.com.
Statements above that are not historical fact are
forward-looking statements, including the timing of the
restructuring, and its impact on our operations, customers, vendors
and employees. Forward-looking statements by their nature involve
substantial risks, uncertainties and assumptions, including without
limitation, contract renegotiations with customers, early
termination or renegotiation by customers or suppliers pursuant to
contract or otherwise, government and regulatory actions and other
factors described in the risks and uncertainties described in our
periodic reports filed with the Securities and Exchange Commission.
Many of these factors are beyond our ability to control or
predict.
Forward-looking statements related to the prepackaged plan of
reorganization involve known and unknown risks, uncertainties,
assumptions and other factors which may cause our actual results,
performance or achievements to be materially different from any
results, performance or achievements expressed or implied by our
forward-looking statements, including but not limited to potential
adverse effects related to the following: potential de-listing of
our common stock on Nasdaq; potential restructuring of our
outstanding debt and related effects on the holders of our
outstanding common stock and notes; potential effects of the
industry downturn on our business, financial condition and results
of operations; potential limitations on our ability to maintain
contracts and other critical business relationships; requirements
for adequate liquidity to fund our operations in the future,
including obtaining sufficient financing on acceptable terms; and
other matters related to the potential restructuring and our
indebtedness. Accordingly, you should not place undue reliance on
forward-looking statements. The Company does not intend to publicly
update any forward-looking statements, whether as a result of new
information, future events, or otherwise, except as may be required
under applicable securities laws.
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SOURCE Hercules Offshore, Inc.