The restructuring resulted in a net debt reduction of approximately USD 3.25 billion and involved the provision of a new USD 450 million credit facility. Creditors received ordinary shares, cash and new loan notes in consideration of the release of debt. In addition, potential claims against the group were transferred into a preserved claims trust to allow creditors to share ratably in any recoveries from such claims.
The Appleby team was led by David Bulley on restructuring and corporate matters and Tony Heaver-Wren and Jeremy Snead on litigation matters with assistance from Benjamin Woolf, Katie Fleming and Appolina Bent, Sally Peedom and Victoria King and David Pytches and Esmond Brown.
Milbank, Tweed, Hadley & McCloy LLP acted as counsel for the Ad Hoc Group in the US and UK and Houlihan Lokey acted as financial advisors to the Ad Hoc Group.
David commented: “This was a highly complex deal involving the re-domiciliation of Ocean Rig UDW Inc. and a COMI shift for three subsidiaries from the Marshall Islands to Cayman. More importantly, this is a deal which almost certainly wouldn’t have been possible in a US Chapter 11 and highlighted the flexibility of the Cayman scheme of arrangement which may be utilised going forwards by other entities incorporated in jurisdictions with limited restructuring toolkits.”
The Cayman Islands is the leading offshore jurisdiction for the registration of investment funds and is the second largest captive domicile in the world with more than 700 captives. The jurisdiction is also recognised in providing trusts, structured finance, company and partnership formation and vessel and aircraft registry services.
