Pacific Drilling S.A. has received notice from the New York Stock Exchange (“NYSE”), that as a result of the filing of its voluntary petition for reorganization (the “Plan of Reorganization”) under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division, and in accordance with Section 802.01D of the NYSE Listed Company Manual, the NYSE has commenced proceedings to delist Pacific Drilling’s common shares from the NYSE. The NYSE also indefinitely suspended trading of Pacific Drilling’s common shares effective November 2, 2020.
The NYSE will apply to the Securities and Exchange Commission (“SEC”) to delist the Company’s common shares upon completion of all applicable procedures. In reaching its determination, the NYSE noted the uncertainty as to the ultimate effect of the bankruptcy process on the value of the Company’s common shares. The NYSE also noted that holders of the common shares will receive no recovery under the prearranged Plan of Reorganization.
Pacific Drilling does not intend to appeal the determination and, therefore, it is expected that the common shares will be delisted.
The Company’s common shares will commence trading in the over-the-counter (“OTC”) market on the Pink Open Market on Tuesday, November 3, 2020. The Company’s NYSE ticker symbol “PACD” will be discontinued and its OTC ticker symbol will be “PACDQ.”
This transition to the OTC market does not affect the Company's business operations and will not change its obligation in the near-term to file periodic and certain other reports with the SEC under applicable federal securities laws. However, in addition to providing that holders of the Company’s commons shares will receive no recovery for their shares, the Plan of Reorganization also calls for the Company to suspend its SEC reporting obligations either before or shortly after its emergence from the Chapter 11 proceedings. Until completion of the Chapter 11 proceedings, shareholders will continue to own their Company common shares and commencing November 3, 2020 will be able to trade them on the Pink Open Market. However, due to the risks and uncertainties resulting from the Chapter 11 proceedings, trading in the Company’s common shares during the pendency of the Chapter 11 proceedings poses substantial risks.