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Diamond Offshore to Wipe $1.8 Billion Debt in Approved Reorg Plan

April 8, 2021, 5:52 PM

Diamond Offshore Drilling Inc. will hand all of its creditors and shareholders at least some recovery of their claims and interests, following bankruptcy court approval of the company’s Chapter 11 plan to eliminate $1.8 billion of debt.

Under the fully consensual plan confirmed Thursday, current shareholders will get rights to purchase shares worth a total of 7% of the company exiting bankruptcy. Unsecured creditors’ claims will be paid in full, Diamond Offshore’s attorney, Robert A. Britton of Paul, Weiss, Rifkind, Wharton & Garrison LLP, said at a hearing.

Diamond Offshore also is getting about $625 million of new money financing...

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