Joint Chapter 11 Plan of Reorganization (the "Plan") for Seahawk Drilling, Inc. and its Affiliated Debtors (the "Debtors") is Confirmed

DALLAS, Oct. 3, 2011 /PRNewswire/ -- On September 28, 2011, the United States Bankruptcy Court for the Southern District of Texas confirmed a joint chapter 11 plan of reorganization (the "Plan") for Seahawk Drilling, Inc. and its affiliated debtors (the "Debtors").

The Bankruptcy Court approved the sale of substantially all of the Debtors' assets to SD Drilling LLC and Hercules Offshore, Inc. in April 2011.  The purchase price received by the Debtors for the assets was (a) 22,321,425 shares of common stock of Hercules Offshore, Inc. (the "Hercules Common Stock"), plus (b) cash in an amount equal to $25,000,012, subject to certain post-closing adjustments.

It is expected that the Plan will become effective on October 4, 2011 (the "Effective Date").  On the Effective Date, certain assets of the Debtors will be transferred to a liquidating trust to be distributed to creditors and equity interest holders in accordance with the terms of the Plan.  Also on the Effective Date, the Hercules Common Stock will vest in the Reorganized Debtors.  An Escrow Agent of the Reorganized Debtors will hold the shares of Hercules Common Stock until the shares are distributed to the Debtor's Debtor-in-Possession Lender, Hayman Capital, and then to creditors and equity holders in accordance with the terms of the Plan.

The trustee of the liquidating trust will be Eugene Davis, who will report to a three-member liquidating trust board charged with oversight of the liquidating trust.  The Official Committee of Equity Security Holders will appoint two of the three members of the liquidating trust board.  The Official Committee of Unsecured Creditors will appoint the third member of the liquidating trust board.  Eugene Davis will also serve as the sole officer and director of the Reorganized Debtors as of the Effective Date.

On the Effective Date, The Depository Trust Company ("DTC"), in conjunction with the cancellation of the equity interests in Seahawk Drilling, Inc., will prepare a list of all holders of equity interests shown on the records of DTC as of the Effective Date, forward that list to the Reorganized Debtors for inclusion in the Interests Register and establish an "escrow CUSIP" number or numbers representing the shares held by the former holders of equity interests which escrow CUSIP number(s) shall represent only the right of such holder to receive distributions under the Plan on account of the canceled equity interests (an "Escrow CUSIP Interest").  The holders of rights in the Escrow CUSIP Interests, including former beneficial owners of common stock of Seahawk Drilling, Inc., may transfer those rights.

Also on the Effective Date, Seahawk's transfer agent charged with maintaining the record of registered holders of Interests in Seahawk will, in conjunction with the cancellation of the Interests in Seahawk, prepare a list of all such holders, and the number of shares held as of the Effective Date, and shall forward that list to the Reorganized Debtors for inclusion in the Interests Register.  The former holders of Seahawk Common Stock who held Interests in their own name may transfer those rights by notifying the Plan Agent of such transfer.

The listing of such former registered holders of Interests in Seahawk, including former holders of Seahawk Common Stock who held Interests in their own name, shall represent only the right of such holder to receive Distributions on account of the canceled Interests.

SOURCE The Official Committee of Equity Security Holders in the bankruptcy case of In re Seahawk Drilling, Inc.