#United States #Houston #Financial Restructuring #Independence Contract Drilling #Chapter 11

Independence Contract Drilling's Successful Transition from Chapter 11

Independence Contract Drilling, Inc. (ICD) has announced its successful emergence from Chapter 11 bankruptcy, marking a pivotal moment in the company's history. The announcement, made on January 20, 2025, confirms that ICD is now a private entity, having completed its restructuring process, which was confirmed by the Bankruptcy Court on January 9, 2025. This transition not only liberates the company from over $197 million in convertible debt but also establishes it with a more robust financial footing.

Financial Reformation & Strengthened Operations

ICD's restructuring has significantly bolstered its working capital position, allowing for more operational flexibility. With the completion of this process, the company gains access to a fully undrawn $30 million revolving credit facility, which will be instrumental in implementing its strategic and operational plans. Anthony Gallegos, the president and CEO of ICD, expressed his enthusiasm about this transition, stating, "This is a significant milestone for ICD as we shift to a private ownership model with a streamlined and efficient cost structure."

Importantly, the restructuring process was managed in a way that preserved the interests of existing unsecured creditors, showing a commitment to fostering strong relationships across the company's financial ecosystem. This newfound financial foundation is expected to position ICD to not only meet but exceed customer expectations in the highly competitive U.S. land contract drilling market.

Advisory Team Behind the Restructuring

The restructuring journey was supported by an experienced advisory team, including Sidley Austin LLP as ICD's restructuring counsel, and Riveron, which provided restructuring advice. Additionally, Piper Sandler acted as the investment banker aiding in navigating this challenging process. Latham & Watkins LLP represented the convertible note holders during the restructuring phase, ensuring that all aspects of the company's finances were managed efficiently and fairly.

About Independence Contract Drilling, Inc.

Independence Contract Drilling specializes in providing land-based contract drilling services to oil and natural gas producers across the United States. With an innovative approach, the company operates a fleet of pad-optimal ShaleDriller rigs designed to enhance production capacity and improve cash flow for its clients in demanding and economically significant oil and gas regions.

As the company looks toward future opportunities, they remain committed to their mission of delivering exceptional service and results in the drilling industry. As detailed on their official website, www.icdrilling.com, ICD aims to continue being at the forefront of drilling operations, leveraging advanced technology and superior service delivery to meet the evolving needs of the energy sector.

In conclusion, Independence Contract Drilling's emergence from Chapter 11 not only signifies a new chapter for the company but also reflects a cautious optimism for an evolving landscape in the U.S. land contract drilling industry. With renewed financial capabilities and a commitment to operational excellence, ICD is poised for growth and success in the years to come.