SDNY Rules Transocean’s Internal Restructuring Does Not Violate Notes Indenture

On December 17, 2020, the United States District Court for the Southern District of New York granted the summary judgment motion filed by Transocean Ltd. and Transocean Inc. and entered a declaratory judgment in favor of Transocean with regard to securities claims brought by Whitebox Relative Value Partners, LP and certain of its affiliates with respect to Transocean’s internal reorganization and exchange transactions that the Company undertook in August 2020.

Whitebox claimed that Transocean made material misstatements and omissions in violation of the Securities Exchange Act of 1934 in the offering memorandum for the Exchange Transaction pursuant to which 8.0% senior notes due 2027 were exchanged for new 11.50% senior guaranteed notes due January 2027.

Please click here to read the full alert memorandum (republished January 25, 2021 by Law360).