Davis Polk is advising an ad hoc group of noteholders (the “Ad Hoc Group”) in connection with a restructuring of Superior Energy Services, Inc. and its subsidiaries (collectively, the “Company”). On September 29, 2020, the Company and the Ad Hoc Group, collectively holding approximately 69.2% of the face amount of the Company’s $1.3 billion of outstanding notes, entered into a restructuring support agreement (“RSA”) that contemplates an in-court restructuring of the Company through a “pre-packaged” chapter 11 bankruptcy. Further, certain members of the Ad Hoc Group and the Company have entered into a commitment letter (the “Delayed-Draw Term Loan Commitment Letter”) to provide delayed-draw term loans in a principal amount not to exceed $200 million.

The RSA provides a pathway for the Company to implement a comprehensive financial recapitalization that would deleverage 100% of the Company’s $1.3 billion funded debt obligations and facilitates the Company’s access to additional financing through the Delayed-Draw Term Loan Commitment Letter. Under the terms of the RSA, the Ad Hoc Group has the right to decide whether or not to separate the Company’s business into two companies (RemainCo and NAM) upon completion of the restructuring transactions. If the separation occurs, then the Company’s noteholders will receive 98.5% of RemainCo’s equity (subject to dilution) and 95% of NAM’s equity (subject to dilution), and if the separation does not occur, then the Company’s noteholders will receive 98% of the reorganized Company’s equity (subject to dilution), in each case with the remainder of the equity retained by existing shareholders.

Headquartered in Houston, Texas, Superior serves the drilling, completion and production-related needs of oil and gas companies worldwide through a diversified portfolio of specialized oilfield services and equipment that are used throughout the economic life cycle of oil and gas wells.

The Davis Polk restructuring team includes partner Damian S. Schaible and associates Adam L. Shpeen and Matthew B. Masaro. The finance team includes partner J.W. Perry and counsel Sanders Witkow. The executive compensation team includes partner Adam Kaminsky and associate Joseph S. Brown. The litigation team includes partner Lara Samet Buchwald. The tax team includes partner William A. Curran. The corporate team includes partner Cheryl Chan. Members of the Davis Polk team are based in the New York and Washington DC offices.

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