Superior Energy confirms prepackaged deleveraging
The court approved Superior Energy Services’ disclosure statement and confirmed its first amended joint prepackaged plan, moving the oilfield-services group from a December 7 filing into implementation roughly six weeks later. The cases covered Houston-based Superior and affiliated debtors with global operations across North America, Latin America, Europe, Africa, the Middle East and Asia Pacific, serving drilling, completion and production customers through specialized equipment and services. CFO Westervelt T. Ballard Jr. said the debtors entered Chapter 11 with about $1.30 billion of unsecured notes, an undrawn ABL facility supporting about $47.4 million of letters of credit, 1,978 employees, and 2019 revenue of $1.425 billion against a $255.7 million net loss source filing.
The restructuring was built around an RSA supported by holders of about 85% of the senior unsecured notes and designed to eliminate roughly $1.30 billion of funded debt. Superior paired the plan with a $120 million senior secured superpriority DIP letter-of-credit facility and a backstop-style delayed-draw term loan commitment of up to $200 million from certain consenting noteholders for post-emergence liquidity source filing. The confirmation order overruled unresolved plan objections, approved the disclosure statement as adequate, authorized the debtors to consummate the plan, and made the plan binding as of the effective date; plan economics turn the reorganized equity and subscription-right structure over to noteholder constituencies while parent-level general unsecured creditors share a limited cash pool source filing.
