September 20, 2016
Curtis Advised Lazard in Connection with Discovery in Paragon Offshore Chapter 11 Cases
Curtis acted as counsel to Lazard Ltd. in connection with discovery related to its role as investment banker to Paragon Offshore plc. (“Paragon”). Paragon and certain affiliates filed for Chapter 11 on February 14, 2016 and those cases are now pending in the District of Delaware before Judge Christopher J. Sontchi.
Paragon retained Lazard prior to its Chapter 11 filing to assist with the formulation of a comprehensive balance sheet restructuring. This included review of and commentary upon Paragon’s financial projections and overall business plan. Curtis advised Lazard during discovery related to Paragon’s confirmation hearing. Prepetition term loan lenders objected to the company’s proposed plan of reorganization on the premise that Paragon’s business plan and financial projections which informed the terms of the plan, and were reviewed by Lazard, were unrealistically optimistic and thus the plan should fail to meet the feasibility standard required for confirmation.
Paragon is a global provider of offshore drilling rigs. Its operated fleet includes 34 jackups, including two high-specification heavy-duty/harsh-environment jackups, and six floaters (four drillships and two semisubmersibles). Paragon's primary business is contracting its rigs, related equipment, and work crews to conduct oil and gas drilling and workover operations for its exploration and production customers on a dayrate basis around the world. Over the past decade, Lazard has advised on more than 500 restructurings worldwide, with an aggregate value of over $1 trillion, including many of the largest and most complex.
The Curtis team was led by Restructuring and Insolvency Partner Steven J. Reisman, Litigation Partner Turner P. Smith and Litigation Associate Michael P. Jones.