Valaris Bankruptcy Plan Approved, Eliminating $7 Billion Debt

Bankrupt offshore drilling giant Valaris Plc won court approval of its reorganization plan, converting $7.1 billion in debt to equity and paying trade creditors and general unsecured claims in full.

The plan, approved Wednesday, puts the company in the “best position” moving forward, Valaris’ attorney, Spencer Winters of Kirkland & Ellis LLP, said at a hearing in the U.S. Bankruptcy Court for the Southern District of Texas.

Pre-bankruptcy lenders and bondholders will get most of the equity in the company emerging from bankruptcy, according to the plan.

Shareholders, which voted for the plan, will get warrants to purchase 7% ...