Nautical Solutions gets confirmation of unanimously approved plan

By Sarah Lizee

Olympia, Wash., Feb. 21 – Nautical Solutions, LLC’s pre-packaged Chapter 11 plan of reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas, according to an order filed Friday.

Counsel for the debtor said at the confirmation hearing that a global settlement had resulted in support from 100% of the debtor’s economic stakeholders, including term lenders that hadn’t supported the plan initially.

The main framework of the plan remains the same.

At its core, the plan contemplates a deleveraging transaction that will replace about $750 million of term loans and secured notes with a new series of $587 million of senior secured notes to be issued on the effective date.

First-lien creditors will receive their pro rata share of the new notes, as well as an excess cash distribution based on the debtor’s effective date cash balance, and an additional cash interest on the notes, pre-accruing on Sept. 1, 2022.

As part of the deal, first-lien creditors will receive an enhanced collateral package.

General unsecured claims and equity interests will be reinstated.

Incorporating the terms of the global settlement, the plan was amended to increase the rate of the post-closing interest on the new notes to 9½% per annum from 8½% per annum.

The plan also now provides for the reimbursement of the term lender group’s reasonable and documented fees and expenses.

Holders of class 3 first-lien claims voted unanimously to accept the plan. This was the only class entitled to vote.

The debtor is hoping to emerge this week.

Nautical Solutions is a deepwater drilling servicer based in Dallas. The company filed bankruptcy on Jan. 9 under Chapter 11 case number 23-90002.

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