| Schedule of Fresh-Start Adjustments |
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Dollars in thousands |
Predecessor |
|
Reorganization Adjustments |
|
Fresh Start Adjustments |
|
Successor |
ASSETS |
Current assets: |
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|
|
|
|
|
|
Cash and cash equivalents |
$ |
51,777 |
|
|
$ |
76,072 |
|
(1) |
$ |
— |
|
|
$ |
127,849 |
|
Restricted cash |
11,070 |
|
|
10,366 |
|
(2) |
— |
|
|
21,436 |
|
Accounts and notes receivable, net |
168,444 |
|
|
— |
|
|
— |
|
|
168,444 |
|
Rig materials and supplies |
39,024 |
|
|
— |
|
|
(21,185 |
) |
(15) |
17,839 |
|
Deferred costs |
3,718 |
|
|
— |
|
|
(3,603 |
) |
(16) |
115 |
|
Other tax assets |
2,725 |
|
|
— |
|
|
— |
|
|
2,725 |
|
Other current assets |
25,501 |
|
|
(8,764 |
) |
(3) |
— |
|
|
16,737 |
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Total current assets |
302,259 |
|
|
77,674 |
|
|
(24,788 |
) |
|
355,145 |
|
Property, plant, and equipment, net |
533,938 |
|
|
— |
|
|
(229,968 |
) |
(17) |
303,970 |
|
Intangible assets, net |
4,245 |
|
|
— |
|
|
13,755 |
|
(18) |
18,000 |
|
Deferred income taxes |
2,518 |
|
|
— |
|
|
1,751 |
|
(19) |
4,269 |
|
Rig materials and supplies |
10,703 |
|
|
|
|
|
(6,845 |
) |
(20) |
3,858 |
|
Other non-current assets |
27,342 |
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|
1,253 |
|
(4) |
544 |
|
(20) |
29,139 |
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Total assets |
$ |
881,005 |
|
|
$ |
78,927 |
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|
$ |
(245,551 |
) |
|
$ |
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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|
$ |
— |
|
Accounts payable |
68,633 |
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|
— |
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|
— |
|
|
68,633 |
|
Accrued liabilities |
65,828 |
|
|
4,990 |
|
(6) |
(3,868 |
) |
(21) |
66,950 |
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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 |
) |
|
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 |
) |
|
371,581 |
|
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 |
) |
|
371,581 |
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Stockholders’ equity: |
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|
|
|
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Predecessor preferred stock |
500 |
|
|
(500 |
) |
(9) |
— |
|
|
— |
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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) |
— |
|
Predecessor accumulated other comprehensive income (loss) |
(7,256 |
) |
|
— |
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|
7,256 |
|
(23) |
— |
|
Successor common stock |
— |
|
|
150 |
|
(12) |
— |
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|
150 |
|
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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Retained earnings (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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Reorganization Adjustments
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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 |
|
Transfers from restricted cash for deposit releases |
250 |
|
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 |
|
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 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 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 |
|
Issuance of successor common stock to the 7.50% note holders and 6.75% note holders |
175,058 |
|
Excess fair value ascribed to lenders participating in equity rights offering |
24,809 |
|
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 |
|
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 |
|
Issuance of successor common stock pursuant to rights offering |
68 |
|
Issuance of successor common stock to predecessor common stock and predecessor preferred stock holders |
2 |
|
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 |
|
Gain on settlement of liabilities subject to compromise |
$ |
191,129 |
|
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 |
|
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 deferred costs 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 |
|
|
Predecessor Historical Book Value |
Customer relationships |
$ |
16,300 |
|
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|
$ |
— |
|
Trade names |
1,500 |
|
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|
368 |
|
Developed technology |
200 |
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|
3,877 |
|
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 rig materials and supplies and other non-current assets reflect the following: |
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Dollars in thousands |
|
Fair value adjustment to rig material and supplies |
$ |
(6,845 |
) |
Net change in rig materials and supplies |
$ |
(6,845 |
) |
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|
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|
Dollars in thousands |
|
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 |
$ |
544 |
|
|
|
(21) |
Changes in accrued liabilities due to the adoption of fresh start accounting include the following: |
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|
|
|
Dollars in thousands |
|
Elimination of deferred rent |
$ |
(1,100 |
) |
Elimination of deferred revenue |
(2,768 |
) |
Net change in accrued liabilities |
$ |
(3,868 |
) |
|
|
(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.
|