No Match Found
The restructuring which closed on 7 June 2023 was implemented through an extrajudicial proceeding approved in Brazil and recognized in the United States under Chapter 15 of the US Bankruptcy Code.
Foresea, a new Brazilian drilling contractor, has emerged out of this major restructuring process that saw local oilfield services provider Ocyan spun off its rig business.
Bondholders including AIG Asset Management, Contrarian Capital Management, Moneda and Allianz agreed to convert $2.7 billion of Ocyan debt into capital, giving birth to a new entity responsible for owning and operating five rigs.
With a backlog order of $2.4 billion thanks to long-term charters for the semi-submersible rig Norbe VI and the drillships Norbe VIII, Norbe IX, ODN I and ODN II, Foresea replaces Ocyan in the drilling arena and is looking for opportunities to win contracts abroad.
The main outcomes of the restructuring include:
As consideration in the restructuring, the project companies’ existing debt was exchanged for a combination of consideration consisting of cash, equity in a new Luxembourg company (Foresea Holding S.A.) to which the reorganized drilling business (including the equity in the project companies) was transferred, new unsecured notes in a new Luxembourg-domiciled company (ConvertCo) and $300 million of new senior secured notes due 2030 issued by Foresea.
Ocyan will now focus on the continued development of its operations in floating production storage and offloading units, and subsea and offshore maintenance services and is also looking into new energies and services to integrate into its portfolio.
Our banking & capital markets team led by Cédric Raffoul (Partner), together with Sixtine Auguet (Senior Associate), Maureen Bayart (Associate) and Elsa Becker (Paralegal) as well as our corporate team led by Jean-Yves Lhommel (Partner) together with Mathieu Feldmann (Senior Counsel), Maxime Gilot (Counsel), Jean-Baptiste Joannard-Lardant (Senior Associate), Jean Valat (Senior Associate) and Amaury Bellac (Junior Associate) advised Ocyan S.A. as to Luxembourg law aspects.
Other key players involved in the restructuring were Eduardo Munhoz Advogados, Pinheiro Neto Advogados, Cleary Gottlieb and Davis Polk & Wardwell LLP.
“Ricardo Zinner/IDTV”, from Foresea communication partners team.