Parker Drilling Company announced that it and its material U.S. subsidiaries have entered into a restructuring support agreement with holders of the company’s securities, including a “significant amount” of its 7.50% senior notes due 2020 and 6.75% senior notes due 2022, outstanding preferred stock and outstanding common stock. The transaction contemplated is “expected to strengthen the Company’s financial foundation and position it to capitalize on further opportunities in the market.” To implement the terms of the agreement, Parker has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas. Parker’s non-U.S. subsidiaries and certain U.S. subsidiaries are excluded from the filing and will not be affected. Parker intends to seek confirmation of a pre-arranged Plan of Reorganization. “Importantly, members of the Consenting Stakeholders have indicated their support for the proposed Plan,” it said in a statement. The company anticipates that its cash flow and existing liquidity will be sufficient to support global operations during this period and has further augmented liquidity with access to $50M in debtor-in-possession financing. The lenders under the DIP financing have also committed to fund an exit facility of $50M, which amount may be increased following emergence, added Parker. The company’s proposed plan, which is subject to court approval, reduces approximately two-thirds of funded debt and injects $95M of new, fully committed equity capital through a backstopped rights offering. It also contemplates the issuance of a new $210M second-lien term loan due 2024 to satisfy the remaining existing Notes. Current preferred equity holders, as well as common equity holders if the class votes to approve the plan, will receive reorganized equity and warrants. Parker states, “Importantly, the Plan and requested first day relief contemplate that vendors and other unsecured creditors who continue to work with the company on existing terms will be paid in full and in the ordinary course of business. All existing customer and vendor contracts are expected to remain in place and be serviced in the ordinary course of business.” The existing management team is expected to remain in place, and the company expects to complete the restructuring process in Q1 of 2019.