Hornbeck Offshore exits bankruptcy with Bobby Jindal on its board of directors | Business


Covington-based Hornbeck Offshore Services Inc. is coming out of Chapter 11 bankruptcy protection, having reorganized the company in the past four months and added more leadership, including a former Louisiana governor.

The company has a new board of directors headed by Todd M. Hornbeck as chairman, alongside Evan Behrens, Kurt M. Cellar, Kevin O. Meyers, retired Admiral John Richardson, John T. Rynd and former Louisiana Governor Bobby Jindal. Larry D. Hornbeck is now the retired president of the company.

Hornbeck Offshore, which provides marine transportation for the US military and oilfield operators in the Gulf of Mexico, filed for preconditioned bankruptcy in May. The shareholders of the company were devastated as a result of the reorganization.

Company executives have been negotiating with lenders for months in an attempt to restructure debt without bankruptcy, but the bottom has collapsed after the coronavirus swept the world and the price of crude oil fell to $ 20 on barrel as demand declined. Since then, oil prices have recovered somewhat, but the coronavirus pandemic has persisted, triggering weak demand for fuel as travelers stay close to home for work and play.

Hornbeck Offshore has paid its general unsecured creditors, which include its trade creditors and suppliers, in recent months during the reorganization process, according to the company. Its $ 1.2 billion debt was restructured as part of the process. The largest unsecured creditor was the Wilmington Trust National Association, which owed $ 675 million plus interest.

Hornbeck Offshore owed more than $ 1 million collectively to seven companies headquartered in Louisiana. These include Mako Unlimited, a Lafayette-based catering and staffing company; supplier based at Houma Coastal Distributors and Juneau Marine Refrigeration; welding company Marine Fab and Repair; and Louisiana CAT machine rental company. Hornbeck owed an additional $ 1.3 million to companies with operations in Louisiana, such as maker Schottel and navigation technology company Guidance Marine.

During the reorganization process, Hornbeck Offshore raised $ 100 million in cash equity led by Special Opportunities Funds, formerly known as Insured Municipal Income Fund, and Los Angeles-based investment manager Ares Management, in addition to funds controlled by the Minneapolis Whitebox hedge fund. Advisors and New York-based alternative investment firm Highbridge Capital Management.

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“The rapid completion of our reorganization and the emergence of Chapter 11 is a significant achievement, especially given the currently very difficult economic environment,” said Todd Hornbeck, CEO and Chairman of Hornbeck Offshore in a press release . “We will now move forward with a stronger financial foundation.”

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