On January 17, 2017, we, the shareholders of Paragon Offshore, sent a Shareholders Letter to the Paragon Offshore Board of Directors, after the lack of engagement with the shareholders when Dean Taylor became the new CEO of Paragon Offshore on November 10, 2016.
The next day on January 18, 2017, Paragon Offshore issued a Press Release stating that all shareholders will have zero recovery in the newly restructured company, after stating that shareholders will retain at least 53% equity in the first two Plans of Restructuring. The Board of Directors still has not replied to our Shareholders Letter with signatures representing 25% of total shareholder equity.
From the Management Incentive Plan and Board Composition on Page 9 of the new Term Sheet, it has become absolutely clear that the Board of Directors and new management have abandoned their fiduciary duty to existing shareholders. Additionally, the essentially worthless current Noble settlement absolves Noble of any fraudulent conveyance claims related to the August 2014 spin-off of Paragon Offshore, in exchange for "help" with potential Mexican tax issues, where Mexico will no longer be a focus region for Paragon Offshore per the Press Release.
If you are a Paragon shareholder, you can join the supportive community of Paragon shareholders on Reddit and engage in group discussions with other shareholders. To join the Reddit community, first create a Reddit account, then send proof of share ownership to investors@paragonoffshoreshareholders.com along with your contact information and your Reddit User ID. We will keep your contact information confidential. Thank you.
The next day on January 18, 2017, Paragon Offshore issued a Press Release stating that all shareholders will have zero recovery in the newly restructured company, after stating that shareholders will retain at least 53% equity in the first two Plans of Restructuring. The Board of Directors still has not replied to our Shareholders Letter with signatures representing 25% of total shareholder equity.
From the Management Incentive Plan and Board Composition on Page 9 of the new Term Sheet, it has become absolutely clear that the Board of Directors and new management have abandoned their fiduciary duty to existing shareholders. Additionally, the essentially worthless current Noble settlement absolves Noble of any fraudulent conveyance claims related to the August 2014 spin-off of Paragon Offshore, in exchange for "help" with potential Mexican tax issues, where Mexico will no longer be a focus region for Paragon Offshore per the Press Release.
If you are a Paragon shareholder, you can join the supportive community of Paragon shareholders on Reddit and engage in group discussions with other shareholders. To join the Reddit community, first create a Reddit account, then send proof of share ownership to investors@paragonoffshoreshareholders.com along with your contact information and your Reddit User ID. We will keep your contact information confidential. Thank you.