Hercules Offshore lays off 60 employees at its Houston headquarters

Offshore drilling services firm Hercules Offshore, which filed its second bankruptcy in less than a year, laid off 60 employees at its Houston headquarters.

The company is expected to undertake further measures whilst undergoing restructuring.

As part of the bankruptcy process, Hercules anticipates a complete shutdown of its facilities.

This has resulted in the permanent terminations of 60 employees at the company’s Houston headquarters, according to data sent to the Texas Workforce Commission (TWC).

Source: RigZone

Adani India interested in SunEdison’s Indian assets

Adani Green Energy, a subsidiary of the Adani Group, was looking to acquire renewable energy projects owned by SunEdison India, subsidiary of the bankrupt parentco SunEdison.

Soon after a bankruptcy filing by the US-based developer, several Indian companies were reported to have expressed interest in acquiring SunEdison India’s projects.

SunEdison India already operates 700 MW of renewable energy capacity, mostly in the form of solar power projects, with an additional 1.7 GW under development. The company sold 425 MW of solar projects in India to its yieldco TerraForm Global for $231m in 2015.

The company also owns wind energy projects, some of which it acquired last year from Fersa Energías Renovables.

Around 1,000 MW of solar capacity is being developed or secured by SunEdison in competitive auctions, which includes the 500 MW project SunEdison won in the Andhra Pradesh auction.

The project was among the most economical projects in India, in terms of tariff.

Apart from Adani Green Energy, Tata Power Renewable Energy is also believed to have expressed interest in acquiring SunEdison’s assets.

Source: CleanTechnica

South Korean shipbuilders sign MOUs for Iranian $2.4bn shipbuilding projects

In a welcome move which temporarily diverts the financial pain suffered by South Korean shipbuilders, Hyundai Heavy Industries (HHI) and Daewoo Shipbuilding & Marine Engineering Co (DSME) have reached preliminary deals, collectively estimated at $2.4bn with an Iranian shipping company Islamic Republic of Iran Shipping Lines (IRISL) and an Iranian petroleum company Iranian Offshore Oil Co. (IOOC) to build ships, tankers and offshore equipment.

However, the efforts have fallen short of reaching official contracts as the companies have just signed memorandum of understandings (MOUs).

Hyundai Mipo Dockyard, a subsidiary of HHI, signed a MOU with IRISL for orders of 10 tankers and at least six handy-size bulk carriers.

Hyundai Heavy was also in talks with IRISL for building around six container carriers with a 14,500 TEU capacity. In this deal, however, HHI was known to be competing with China’s Dalian Shipbuilding Industry Co.

IRISL, which operates about 115 oceangoing vessels, with a total of capacity of 3.3m tons, has an aging fleet which requires urgent replacement. While IRISL was modernizing its vessels, the company was chartering ships from foreign shipping companies including Greek carriers.

DSME was in negotiations with IOOC to seal orders of at least five jack-up rigs. But the deal also reached just signing a MOU.

Separately, Daewoo’s creditors have urged the shipbuilder’s workers to refrain from going on a strike as the restructuring plan outlined by the company had proposed job cuts in order to stay viable, financially.

Source: Business Korea

 

Creditors urge Daewoo Shipbuilding’s workers not to go on strike

According to sources, creditors of South-Korea’s Daewoo Shipbuilding & Marine Engineering urged the company’s workers to refrain from going on strike, saying that it would deter the ongoing efforts to restructure the financially shaky firm.

Sources state that about 7,000 unionized workers at Daewoo Shipbuilding’s yards are scheduled to vote on whether or not they will launch a strike, claiming that the shipbuilder’s restructuring schemes submitted to its creditors negatively impacts the workers employment.

The results of the decision to strike is expected to come out by late Tuesday.

The company and union, in particular, are also at odds over the plan to slash the workforce by an additional 2,300 to 10,000 by 2019.

Last year, Daewoo Shipbuilding’s creditors provided KRW 4.2tn ($3.58bn) in financial aid to prevent its workers from going on a strike. Since August 2015, the creditors, led by state-run Korea Development Bank, have provided KRW 3.2tn in financial help to the shipbuilder.

Last week, the shipbuilder mapped out a KRW 5.3tn self-rescue plan, approved by its creditors, which includes asset sales and a spin-off of key business units.

Separately, the union of Hyundai Heavy Industries is set to hold a meeting of its representatives on Friday to decide on whether to go on strike.

Source: Korea Times

Dr. Reddy’s Labs to acquire eight U.S. drugs from Teva & Allergan for $350m

India-based pharma firm drugmaker Dr Reddy’s Laboratories Ltd has reached an agreement to acquire eight generic brands of drugs from Teva Pharmaceutical Industries and Allergan Plc for $350m in cash to bolster its U.S. business.

The deal is part of Teva Pharma’s plan to divest certain brands of generics in the U.S. market to gain regulatory approval for its $40.5bn merger with Allergan.

The deal consists of generic drugs awaiting U.S. approval, and some that are already on the market, including “complex generic products across diverse dosage forms”.

The branded versions of drugs under the deal had U.S. sales of about $3.5bn in the year to April 2016 (Source: IMS Health).

Dr Reddy’s plans to finance the deal with cash on hand and available borrowings under existing credit facilities.

Source: Reuters

Symantec to acquire Blue Coat Systems Inc. for $4.6bn in an all-cash transaction

Symantec Corp. plans to acquire Blue Coat Systems Inc. for $4.65bn in an all-cash transaction to beef up its cyberdefense technology and fill its vacant chief executive officer position.

Blue Coat’s CEO Greg Clark would become CEO of the combined company after the deal closes by 3Q 2016 in September.

Synergies from the deal would result in additional cost savings of $150m annually, over an expected $400m.

As part of the deal, PE sponsor Bain Capital LLC, which controls Blue Coat, will put $750m of its proceeds from the sale into the combined company. Private equity firm Silver Lake will double its investment to $1bn.

Source: Bloomberg

Hyundai Merchant’s shares fall on concern of share dilution in debt swap

Shares of Hyundai Merchant Marine Co. plunged 19% in trade today, the most in 3 months, as investors worried that the company’s debt-to-equity exchange plan would dilute their shareholding.

Hyundai Merchant’s stock declined to KRW 15,000 in trade in Seoul, today.Rival firm Hanjin Shipping‘s shares also dropped as much as 9.2%, as investors feared a similar outcome, as the company is in negotiations with lenders about a possible swap, similar to Hyundai’s.

Hyundai Merchant will issue 236m new shares to its creditor banks, bondholders and shipowners in the debt-for-equity swap as part of its restructuring plan.

The plan follows South Korea’s Finance Minister Yoo Il Ho’s call for restructuring in the shipping industry as weak demand and dwindling cash levels hurt the companies.

The nation also prepares to start a KRW 11tn fund aimed at restructuring its ailing shipbuilding industry.

Source: Bloomberg

South Korea’s KRW 11tn fund to aid its ailing shipping industry

The Government of South Korea plans to create a KRW 11tn ($9.5bn) fund to support restructuring of the nation’s shipping and shipbuilding industries. The move comes in line with the central bank’s decision to lower benchmark borrowing rates as part of pulling the nation’s economy out of its slump.

The government aims to start operating the fund from 1 July 2016 until the end of 2017.

According to South Korea’s Finance Minister Yoo Il Ho, the fund would buy hybrid bonds issued by state-run banks.

Separately, the finance ministry plans to inject KRW 1tn of capital into the Export-Import Bank of Korea by September 2016 to ensure Kexim’s capital ratio doesn’t fall by too much.

The government currently estimates that these lenders would require about KRW 5 – 8tn of capital, assuming that Korea Development Bank and Kexim meet BIS ratios of 13% and 10.5%, respectively. KDB’s ratio currently was at 14.6% while Kexim’s was 9.9%.

Source: Bloomberg

Seadrill agrees to debt-to-equity exchange

Offshore drilling services provider Seadrill Ltd. agreed to a debt-to-equity exchange with certain bondholders as part of its broader debt restructuring plan.

The company agreed to issue a total of 7.5m new equity shares having par value of $2 per share in exchange for $50m principal amount of the 5.625% Senior Unsecured notes due 2017.

Settlement of this offer was expected to occur on 13 June 2016, upon which the company would have a total of 508,444,280 shares of its common stock outstanding.

Source: Seadrill Ltd. Press Release

AB INBev’s acquisition of SABMiller close to winning Chinese approval

According to sources, Anheuser-Busch InBev NV’s $107bn acquisition of rival SABMiller Plc was nearing regulatory approval from China’s Ministry of Commerce, seen to come as soon as this month based on typical review timelines, thus, clearing one of the final hurdles for the deal.

Previously, the deal had secured regulatory clearance from the European Union.

One of the conditions put forth by the regulatory body which asked for the divestiture of operations of the Snow beer, was accepted by the two companies.

The companies agreed to sell SABMiller’s 49% stake in its joint venture with China Resources Beer (Holdings) Co., which controls Snow beer, back to its partner for $1.6bn, a deal which was also nearing approval from China’s commerce ministry.

Following divestitures, the deal will keep Budweiser, Beck’s and Stella Artois under AB InBev’s roof, while ceding control of brands including Miller in the U.S. and Peroni and Pilsner Urquell in Europe.

In the U.S., AB InBev has agreed to sell SABMiller’s stake in the MillerCoors joint venture.

Source: Bloomberg