LaForta Gestao sets bid procedures for drilling rig La Muralla IV

By Sarah Lizee

Olympia, Wash., Aug. 25 – LaForta Gestao e Investimentos Sociedade Unipessoal LDA is seeking court approval of bid procedures for its only asset, La Muralla IV, an ultra-deepwater semi-submersible drilling rig, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company is also seeking approval to transfer to the winning bidder any contracts the debtor entered into post-petition that are not terminated on or before the sale closes.

The company noted that it negotiated with backstop lenders to include credit bid caps to ensure the nearly $1 billion in debtor-in-possession lender and noteholder claims don’t chill bidding. The caps will be disclosed by Sept. 27.

The backstop lenders also have the option to set a floor price.

Under the proposed bid procedures, bids are due by 1 p.m. ET on Oct. 26. An auction, if needed, will be held on Nov. 2, and a sale hearing will take place on Nov. 15.

A hearing on approval of the bid procedures is scheduled for Sept. 6.

The Funchal, Portugal-based ultra-deepwater semi-submersible drilling rig owner is a wholly owned subsidiary of non-debtor Offshore Drilling Holding SA. It filed bankruptcy on June 16 under Chapter 11 case number 22-90126.

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