Case Study

Following a reduction in oil & gas drillship charter fees, PEMEX (Mexican oil company) charter agreement was terminated.

$947M in secured notes were in default. The client was burning cash and unable to afford tens of millions of dollars in marine recertifications and upgrades required to secure a contract and generate revenue.

Due to the instability in global oil & gas markets, the client was unable to obtain a new drilling contract near-term. Insurance had lapsed on the drillship.

The harbormaster in Mexico would not allow the rig to depart due to the company being in arrears on crew wages.

The company had inexperienced and understaffed marine management and crew.

No routine maintenance was being performed on the highly complex rig systems and majority of the drillship’s automation, machinery and thruster systems were inoperable.

Tax tariffs were past due with export termination timeframe nearing.

As CRO and Financial Advisor, began the highly intensive process of assessing the maritime, international, operational, and financial condition of the client.

Developed and implemented a focused, solutions-driven rapid response plan that readied the drillship to legally transport within 3 weeks of taking control.

Working with debtors, bondholders, their counsel, and advisors, developed a DIP budget underlying a $33M DIP loan necessary to fund the operations and case.

Obtained Power of Attorney in Mexico to take control of the drillship operating company to assure successful operations, safety, and exportation efforts.

Within hours onboard, established the drillship’s anchor system to effectively moor the rig and cease the excess fuel consumption and mitigate the failing systems issues.

Employed a specialized professional marine crew to assist in taking control and management of the drillship while readying it for surveys and transit.

Managed Mexican agent in organizing Mexican regulatory and customs documents to allow export of the drillship.

Oversaw the engineering, design, and implementation of a proper mooring arrangement in Freeport, Grand Bahamas.              

Successfully directed the towing of the drillship approximately 1,200 NM across the Gulf of Mexico while meeting all schedules as outlined in original plan under budget.

Weathered 2 hurricanes without damage to the rig at mooring point in Freeport, Grand Bahamas.

The Bankruptcy Court $60M sale was approved and closed preserving the drillship, all its drilling equipment, its collateral value while averting both marine and environmental disasters.