OREANDA-NEWS. Paragon Offshore plc ("Paragon" or the "company") (OTC: PGNPF) today announced that the company and certain of its subsidiaries have elected to commence proceedings under Chapter 11 of the United States Bankruptcy Code ("Chapter 11") in the United States Bankruptcy Court in the District of Delaware. 

As previously announced on February 12, 2016, Paragon entered into a Plan Support Agreement (the "PSA") to support a restructuring of Paragon's balance sheet.  As of February 15, 2016,the PSA has been signed by an ad hoc committee representing approximately 77% in the aggregate of holders (the "Bondholders") of its senior unsecured notes and a group comprising approximately 96% of the amounts outstanding ("Revolver Lenders") under Paragon's Senior Secured Revolving Credit Agreement (the "Revolving Credit Agreement").  An additional member of the Revolving Credit Agreement group signed the PSA subsequent to the February 12, 2016 announcement.  Approval of the transaction by the Revolver Lenders and the Bondholders will require that 2/3 in principal amount and 1/2 in number of those voting in each class to approve the transaction. 

The company also announced that it has filed certain "first-day" motions with the court to facilitate operating in the normal course throughout the Chapter 11 process.  These motions will ensure that the company's vendors, as well as employees, will continue to be paid.  Paragon expects to maintain sufficient liquidity throughout the restructuring process to maintain its business operations. 

Randall D. Stilley, President and Chief Executive Officer of Paragon, said, "Paragon has acted proactively to strengthen the company's balance sheet in this challenging environment.  We look forward to moving as quickly as possible through this process while maintaining our focus on delivering safe, reliable, and efficient operations as the industry's High-Quality, Low-Cost drilling contractor. We are confident that Paragon will emerge as an even stronger company, better positioned for long-term growth and success."