| Schedule of Fresh-Start Adjustments |
The explanatory notes provide additional information with regard to the adjustments recorded, the methods used to determine the fair values and significant assumptions.
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Predecessor |
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Reorganization Adjustments |
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Fresh Start Adjustments |
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Successor |
ASSETS |
Current assets: |
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Cash and cash equivalents |
$ |
51,777 |
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|
$ |
76,072 |
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(1) |
$ |
— |
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|
$ |
127,849 |
|
Restricted cash |
11,070 |
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|
10,366 |
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(2) |
— |
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|
21,436 |
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Accounts and notes receivable, net |
168,444 |
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|
— |
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|
— |
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|
168,444 |
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Rig materials and supplies |
39,024 |
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|
— |
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|
(21,185 |
) |
(15) |
17,839 |
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Other current assets |
31,944 |
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|
(8,764 |
) |
(3) |
(3,603 |
) |
(16) |
19,577 |
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Total current assets |
302,259 |
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|
77,674 |
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(24,788 |
) |
|
355,145 |
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Property, plant and equipment, net |
533,938 |
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|
— |
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(229,968 |
) |
(17) |
303,970 |
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Intangible assets, net |
4,245 |
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|
— |
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|
13,755 |
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(18) |
18,000 |
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Deferred income taxes |
2,518 |
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|
— |
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|
1,751 |
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(19) |
4,269 |
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Other non-current assets |
38,045 |
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|
1,253 |
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(4) |
(6,301 |
) |
(20) |
32,997 |
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Total assets |
$ |
881,005 |
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|
$ |
78,927 |
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|
$ |
(245,551 |
) |
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$ |
714,381 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities: |
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Debtor in possession financing |
$ |
10,000 |
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|
$ |
(10,000 |
) |
(5) |
$ |
— |
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|
$ |
— |
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Accounts payable and accrued liabilities |
134,461 |
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|
4,990 |
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(6) |
(3,868 |
) |
(21) |
135,583 |
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Accrued income taxes |
5,013 |
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— |
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— |
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|
5,013 |
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Total current liabilities |
149,474 |
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(5,010 |
) |
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(3,868 |
) |
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140,596 |
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Long-term debt |
— |
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|
210,000 |
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(7) |
— |
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|
210,000 |
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Other long-term liabilities |
20,901 |
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— |
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(866 |
) |
(22) |
20,035 |
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Long-term deferred tax liability |
28,445 |
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— |
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(27,495 |
) |
(19) |
950 |
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Commitments and contingencies |
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Total liabilities not subject to compromise |
198,820 |
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|
204,990 |
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(32,229 |
) |
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371,581 |
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Liabilities subject to compromise |
600,996 |
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(600,996 |
) |
(8) |
— |
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— |
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Total liabilities |
799,816 |
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(396,006 |
) |
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(32,229 |
) |
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371,581 |
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Stockholders’ equity: |
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Predecessor preferred stock |
500 |
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(500 |
) |
(9) |
— |
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— |
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Predecessor common stock |
1,398 |
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(1,398 |
) |
(10) |
— |
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— |
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Predecessor capital in excess of par value |
767,793 |
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(35,839 |
) |
(11) |
(731,954 |
) |
(23) |
— |
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Predecessor accumulated other comprehensive income (loss) |
(7,256 |
) |
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— |
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|
7,256 |
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(23) |
— |
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Successor common stock |
— |
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|
150 |
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(12) |
— |
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|
150 |
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Successor capital in excess of par value |
— |
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|
342,650 |
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(13) |
— |
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|
342,650 |
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Accumulated deficit |
(681,246 |
) |
|
169,870 |
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(14) |
511,376 |
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(23) |
— |
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Total stockholders’ equity |
81,189 |
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|
474,933 |
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(213,322 |
) |
|
342,800 |
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Total liabilities and stockholders’ equity |
$ |
881,005 |
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$ |
78,927 |
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|
$ |
(245,551 |
) |
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$ |
714,381 |
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(1) |
Changes in cash and cash equivalents included the following: |
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Dollars in thousands |
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Proceeds from the rights offering |
$ |
95,000 |
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Transfers from restricted cash for the return of cash collateral (for letters of credit) |
10,433 |
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Proceeds from refund of backstop commitment fee |
7,600 |
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Transfers from restricted cash for deposit releases |
250 |
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Transfers to restricted cash for funding of professional fees |
(21,049 |
) |
Payment of debtor in possession financing principal and interest |
(10,035 |
) |
Payment of professional fees |
(5,154 |
) |
Payment of debt issuance costs for the successor credit facility |
(490 |
) |
Payment of fees on letters of credit |
(58 |
) |
Payment of term loan agent fees |
(50 |
) |
Payment of other reorganization expenses |
(375 |
) |
Net change in cash and cash equivalents |
$ |
76,072 |
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(2) |
Changes in restricted cash reflects the net transfer of cash between restricted cash and cash and cash equivalents. |
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(3) |
Changes in other current assets include the following: |
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Dollars in thousands |
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Refund of backstop commitment fee |
$ |
(7,600 |
) |
Elimination of predecessor directors and officers insurance policies |
(702 |
) |
Reclass of prepaid costs related to the successor credit facility |
(488 |
) |
Payment of other costs related to the successor credit facility |
26 |
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Net change in other current assets |
$ |
(8,764 |
) |
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(4) |
Changes in other non-current assets include the following: |
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Dollars in thousands |
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Capitalization of debt issuance costs on the successor credit facility |
$ |
765 |
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Reclass of prepaid costs related to the successor credit facility |
488 |
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Net change in other non-current assets |
$ |
1,253 |
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(5) |
Reflects the payment of debtor in possession financing principal. |
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(6) |
Changes in accounts payable and accrued liabilities include the following: |
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Dollars in thousands |
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Accrual of professional fees |
$ |
7,100 |
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Payment of professional fees |
(2,017 |
) |
Payment of debtor in possession financing interest |
(35 |
) |
Payment of letters of credit fees |
(58 |
) |
Net change in accounts payable and accrued liabilities |
$ |
4,990 |
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(7) |
Changes in long-term debt include the issuance of the $210.0 million Term Loan.
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(8) |
Liabilities subject to compromise to be settled in accordance with the Plan and the resulting gain was determined as follows: |
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Dollars in thousands |
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Liabilities subject to compromise |
$ |
(600,996 |
) |
Issuance of term loan |
210,000 |
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Issuance of successor common stock to the 7.50% note holders and 6.75% note holders |
175,058 |
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Excess fair value ascribed to lenders participating in equity rights offering |
24,809 |
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Gain on settlement of liabilities subject to compromise |
$ |
(191,129 |
) |
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(9) |
Changes in Predecessor Preferred Stock reflects the cancellation of Predecessor Preferred Stock. |
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(10) |
Changes in Predecessor Common Stock reflects the cancellation of Predecessor Common Stock. |
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(11) |
Changes in Predecessor capital in excess of par include the following: |
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Dollars in thousands |
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Cancellation of predecessor preferred stock |
$ |
500 |
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Cancellation of predecessor common stock |
1,398 |
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Issuance of successor warrants to predecessor common stock and predecessor preferred stock holders |
(14,687 |
) |
Issuance of successor common stock to predecessor common stock and predecessor preferred stock holders |
(4,950 |
) |
Excess fair value ascribed to parties participating in rights offering, excluding lenders |
(18,100 |
) |
Net change in predecessor capital in excess of par value |
$ |
(35,839 |
) |
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(12) |
Changes in Successor Common Stock include the following: |
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Dollars in thousands |
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Issuance of successor common stock to the 7.50% note holders and 6.75% note holders |
$ |
80 |
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Issuance of successor common stock pursuant to rights offering |
68 |
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Issuance of successor common stock to predecessor common stock and predecessor preferred stock holders |
2 |
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Net change in successor common stock |
$ |
150 |
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(13) |
Change in Successor capital in excess of par value include the following: |
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Dollars in thousands |
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Issuance of successor common stock to the 7.50% note holders and 6.75% note holders |
$ |
174,978 |
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Issuance of successor common stock pursuant to rights offering |
148,874 |
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Issuance of successor warrants to predecessor common stock and predecessor preferred stock holders |
14,687 |
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Issuance of successor common stock to predecessor common stock and predecessor preferred stock holders |
4,948 |
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Equity issuance costs |
(837 |
) |
Net change in successor capital in excess of par value |
$ |
342,650 |
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(14) |
Changes in accumulated deficit include the following: |
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Dollars in thousands |
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Gain on settlement of liabilities subject to compromise |
$ |
191,129 |
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Backstop premium on rights offering |
(11,032 |
) |
Accrual of professional fees |
(5,988 |
) |
Payment of professional fees |
(3,137 |
) |
Elimination of predecessor directors and officers insurance policies |
(702 |
) |
Payment of other reorganization items |
(400 |
) |
Net change in accumulated deficit |
$ |
169,870 |
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Fresh Start Accounting Adjustments
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(15) |
Changes in rig materials and supplies reflect the fair value adjustment due to the adoption of fresh start accounting. |
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(16) |
Changes in other current assets reflect the elimination of capitalized mobilization costs due to the adoption of fresh start accounting. |
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(17) |
Changes in property, plant and equipment, net reflects the fair value adjustment due to the adoption of fresh start accounting. |
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(18) |
Changes in intangible assets, net reflects the fair value adjustment due to the adoption of fresh start accounting. |
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Dollars in thousands |
Successor Fair Value |
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Predecessor Historical Book Value |
Customer relationships |
$ |
16,300 |
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$ |
— |
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Trade names |
1,500 |
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|
368 |
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Developed technology |
200 |
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|
3,877 |
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Intangible assets, net |
$ |
18,000 |
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$ |
4,245 |
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(19) |
Changes in deferred income taxes reflects the adjustment due to the adoption of fresh start accounting. |
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(20) |
Changes in other non-current assets reflect the following: |
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Dollars in thousands |
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Fair value adjustment to rig material and supplies |
$ |
(6,845 |
) |
Fair value adjustment to investment in non-consolidated subsidiaries |
2,290 |
|
Fair value adjustment to long-term notes receivable |
(272 |
) |
Elimination of capitalized mobilization costs |
(857 |
) |
Elimination of long-term other deferred charges |
(617 |
) |
Net change in other non-current assets |
$ |
(6,301 |
) |
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(21) |
Changes in accounts payable and accrued liabilities due to the adoption of fresh start accounting include the following: |
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Dollars in thousands |
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Elimination of deferred rent |
$ |
(1,100 |
) |
Elimination of deferred revenue |
(2,768 |
) |
Net change in accounts payable and accrued liabilities |
$ |
(3,868 |
) |
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(22) |
Changes in other long-term liabilities reflects the elimination of deferred revenue due to the adoption of fresh start accounting. |
(23) Changes reflect the cumulative impact of fresh start accounting adjustments discussed above and the elimination of Predecessor accumulated other comprehensive loss and Predecessor accumulated deficit.
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