Pacific Drilling creditors propose debt-for-equity swap

Pacific Drilling’s creditors have proposed a debt restructuring package that would see all of its debt converted into equity.

The proposal, which was disclosed in a regulatory filing, would leave existing shareholders with just a 2% stake in the US-listed drillship owner.

However, existing shareholders would also be provided with warrants that could eventually give them another 20% of the company.

Analysts said that if the deal were to succeed Pacific Drilling would emerge as a “formidable competitor in the ultra-deepwater space”.

Pacific