HOUSTON, TX – Independence Contract Drilling (NYSE:ICD), Inc. (OTC Pink Sheets: ICDIQ), a company specializing in drilling oil and gas wells, has received confirmation from the United States Bankruptcy Court for the Southern District of Texas for its prepackaged plan of reorganization, according to an 8-K filing with the Securities and Exchange Commission (SEC).
The confirmation, dated January 9, 2025, marks a significant step in the company’s restructuring process, which began with a Chapter 11 bankruptcy filing on December 2, 2024. The court-approved plan is expected to take effect on January 17, 2025, subject to the satisfaction of certain conditions.
Under the terms of the plan, holders of the company’s convertible notes will receive new common stock in the reorganized company, while existing common stock, totaling 15,142,611 shares as of the confirmation date, will be cancelled without compensation to shareholders. The plan also outlines the issuance of approximately 1,000,000 shares of new common stock, which will not be listed on any national securities exchange.
In addition, Independence Contract Drilling will secure a debtor-in-possession (DIP) facility to support ongoing operations and satisfy certain obligations, including repayment of revolving credit and payments to vendors and employees. Upon the plan’s effective date, the company will enter into new exit facilities, which include an asset-based lending (ABL) facility and a term loan facility.
This restructuring plan aims to address the company’s financial challenges and provide a path forward for its operations. Independence Contract Drilling’s most recent financial data can be found in its Form 10-Q for the quarter ended September 30, 2024.
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