Financial Advisory
Slaughterandmay
Full Credential Description
Valaris Plc, a leading offshore drilling service provider, faced significant financial challenges, culminating in a need for a comprehensive restructuring of its existing bank and bond debt. The company was burdened with $7.1 billion in debt, which necessitated a strategic approach to navigate the complexities of a Chapter 11 filing initiated in August 2020. The restructuring process involved extensive negotiations over several months, ultimately leading to a prearranged financial restructuring that was approved by the US bankruptcy court on March 3, 2021. The tailored solution provided by Slaughter and May included the elimination of the $7.1 billion debt and securing a $520 million capital injection for the restructured Valaris group through the issuance of $550 million in new secured notes. This restructuring was not only a financial maneuver but also involved navigating complex , including obtaining antitrust approvals from Saudi Arabia and Mexico. The culmination of this effort was the pre-packaged administration sale of Valaris business and assets to a newly-incorporated Bermuda company owned by its existing financial creditors on April 30, 2021. As a result of this restructuring, Valaris was able to commence trading its common stock and warrants on the NYSE on May 3, 2021, marking a significant turnaround for the company. The restructuring not only stabilized Valaris financial position but also positioned it for future growth in the offshore drilling sector, demonstrating the effectiveness of the tailored legal and financial strategies employed by Slaughter and May and its partners.