Ocean Rig restructuring—deal debrief [Archived]
Produced in partnership with Caroline Moran, Nick Herrod and Christian La-Roda Thomas of Maples and Calder

The following Restructuring & Insolvency practice note produced in partnership with Caroline Moran, Nick Herrod and Christian La-Roda Thomas of Maples and Calder provides comprehensive and up to date legal information covering:

  • Ocean Rig restructuring—deal debrief [Archived]
  • Pre-existing group structure and debt profile
  • Background and reasons for the restructuring
  • Key steps in the restructuring
  • Court guidance
  • Class composition
  • Blots, fairness, creditor opt-outs
  • Good forum shopping
  • Practical effects
  • Black letter law in the Cayman Islands

Ocean Rig restructuring—deal debrief [Archived]

In September 2017, the Grand Court of the Cayman Islands (Parker J) sanctioned four separate interlinked Cayman Islands schemes of arrangement to restructure the financial indebtedness of the Ocean Rig group in one of the largest ever Cayman Islands debt restructurings. Among other innovations, the restructuring involved the first ever Cayman Islands schemes of arrangement of foreign incorporated companies, the first pre-filing shift of centre of main interests (COMI) to the Cayman Islands and the first use of a Cayman Islands STAR trust in a restructuring. The decision to take advantage of Cayman Islands restructuring proceedings is an important example of good forum shopping to achieve the most cost effective and efficient restructuring for all stakeholders.

Pre-existing group structure and debt profile

The parent company, Ocean Rig UDW Inc. (UDW) was a Cayman Islands registered company, having migrated to the Cayman Islands by way of continuation for reasons unrelated to the restructuring. Continuation allows a company incorporated in one jurisdiction to be seamlessly transferred to the Cayman Islands. There are a number of requirements that need to be fulfilled before a company can be ‘continued’ to the Cayman Islands which are beyond the scope of this Practice Note. UDW was listed on the NASDAQ and was the parent of Drill Rigs Holdings Inc. (DRH), Drillships Financing Holding Inc. (DFH) and Drillships Ocean

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