Paragon Offshore Plc said on Friday that it was evaluating its options after a U.S. judge rejected the offshore rig contractor's plan to exit bankruptcy, Reuters reported. In an oral ruling in U.S. Bankruptcy Court in the District of Delaware, Bankruptcy Judge Christopher Sontchi said that the plan was not feasible because it removes too much cash from the company during the current downturn. The ruling does not preclude the company from a restructuring under a different plan, he said. "The company continues to believe, but cannot provide any assurances, that a positive resolution of the company's restructuring process can be achieved," Paragon said. Houston-based Paragon, with rigs around the world, filed a pre-negotiated chapter 11 in February with about $2.6 billion of long-term debt. Paragon's secured lenders had said that the company faced a risk of a second chapter 11 filing because of overly ambitious assumptions. Read more.
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