Situation
Signal International, Inc. and affiliated entities (Signal) is engaged in the business of offshore drilling rig overhaul, repair, upgrade, and conversion, as well as new shipbuilding construction. Its operations are in Mobile, Alabama and Pascagoula, Mississippi. Signal had liquidity constraints due in large part to a decline in oil and gas prices, resulting in a slowdown of drilling operations in the Gulf region. In addition, Signal had incurred significant legal fees and expenses defending several pending litigations in New York, Texas and Louisiana.
Signal filed for protection under Chapter 11 of the bankruptcy code in July 2015 in the hopes of being able to sell substantially all of the assets as a going concern and provide a distribution to litigation plaintiffs and general unsecured creditors.
Action
In May 2015, Signal engaged GGG as its financial advisor through its Chapter 11 filing. Prior to the filing GGG worked quickly:
- Creating a working cash flow to determine and track cash requirements
- Gathering and compiling all filing data
- Creating a communication plan for all stakeholders
- Communicating with the Creditors Committee
- Providing expert testimony
Results
Signal had a successful “363” sale that concluded in November 2015. Operations continued normally through the sale process and the assets are now under new ownership. The confirmed plan of reorganization resulted in the formation of the Signal Liquidating Trust, with GGG being the Trustee.
Global M&A Network Atlas Award
GGG and the work of Scott Yates were recognized by the Global M&A Network at the 8th Annual Turnaround Atlas Awards Gala with the Chapter 11 Restructuring of the Year for Small Mid Markets in 2016 for their work on Signal.