Seabras 1 Bermuda and Seabras 1 USA filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code.
The Filings were made to ensure an orderly process to effectuate a new restructuring plan for Seabras 1 Bermuda, while ensuring that the company’s customers will continue to be served as usual.
Seabras 1 Bermuda anticipates filing its proposed restructuring plan in the near term and working closely with its secured lenders to fashion a plan to address the debt situation and emerge as a healthy business.
The companies do not anticipate, nor do they wish to explore, any sale efforts through the processes contemplated by the Filings. The companies expect to complete the process relating to the Filings within the next few months and to emerge within the second quarter of 2020, subject to all required approvals, Seabras 1 explained.
Seaborn Networks, being the operator of the companies’ business, is not part of the Filings and continues to be the operator of their business. Seaborn is one of the indirect shareholders of the companies.
Seaborn’s work in this regard is not expected to be impacted by the Filings, and the Companies expect that Seaborn will continue to provide all SG&A and Operations & Engineering services for the companies.
The plan to be proposed by the companies is not expected to contemplate any changes in business arrangements or activities for any of the Seabras 1 Bermuda’s subsidiaries, or for Seaborn, and all trade/vendor claims are expected to be paid in full.
The companies have also filed the customary motions as part of the Filings to compensate vendors as usual, maintain their usual programs for customers and partners, and otherwise operate their business as usual.