Offshore drilling rig operator Paragon Offshore PLC is in talks with its bondholders aimed at reaching a deal to reduce its $2.6 billion debt load, the Wall Street Journal reported today. The Houston company recently started confidential discussions with bondholders including AllianceBernstein Holding LP and Loomis Sayles & Co. The debt restructuring could involve a swap of bonds for new debt, an ownership stake in the company or a cash payment. The bondholders are working with advisory firm Ducera Partners LLC while a separate group of Paragon’s senior lenders has tapped PJT Partners Inc. Paragon earlier this year said it tapped investment bank Lazard Ltd. and law firm Weil, Gotshal & Manges LLP for advice on fixing its capital structure. Read more. (Subscription required.)
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