UK-based energy services provider Altera Infrastructure has emerged from chapter 11 bankruptcy, a few months after filing for it, Offshore-Energy.biz reported. Thanks to a charter for an FPSO, which is expected to be deployed at one of the largest undeveloped oil fields in the UK, the firm expects to strengthen its balance sheet further, as it sees this as a foundation for long-term growth if this project goes ahead. Back in August 2022, Altera Infrastructure, formerly a part of Teekay, entered a chapter 11 bankruptcy process in the U.S. to address its debt of over $1.5 billion. As explained at the time, the firm executed a restructuring support agreement (the RSA) with approximately 71 per cent of its funded debt obligations, which included an investment management company Brookfield and a super-majority of its bank lenders. Altera Shuttle Tankers and FPSO joint ventures were not part of the restructuring process. In an update on Monday, Altera Infrastructure revealed that it has emerged from the chapter 11 process in the U.S. Bankruptcy Court for the Southern District of Texas after consummating its chapter 11 plan of reorganisation. This restructuring, which was consummated approximately five months after the chapter 11 process started, addressed more than $1 billion of secured and unsecured holding company debt, $400 million of preferred equity, and $550 million of secured asset-level bank debt, including unsecured guarantees of such debt issued by the firm.
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