Looking Ahead to a New Boart Longyear

September 2021 Shareholder Update

August 2021 Shareholder Update

May 2021 Shareholder update

In May 2021, an overwhelming majority of Boart Longyear's (BLY or the Company) lenders agreed to a proposed Recapitalisation.  This major milestone will substantially reduce debt, strengthen the balance sheet, lower interest expense, and enhance liquidity to support the Company’s operations and future growth.  Under the plan, Boart Longyear’s debt would decrease to less than US$200 million, as approximately US$795 million of debt would be converted into 98.5% of BLY's post-recapitalisation ordinary shares of stock. 

This process will not affect day-to-day operations. We expect to continue operations and meet our obligations to customers, vendors and employees in the ordinary course of business, both now and on a go-forward basis.

The company’s underlying business is sound. Our operations are competitive, demand for our products and services is increasing, and the operating outlook is brighter than it has been in many years. But our debt level, and its servicing costs, has remained unsustainably high.  We look forward to progressing to the implementation phase of this well-considered plan, both in Australia and North America because it is the best way to provide best value for creditors and shareholders.

The Company will seek to implement the Recapitalisation primarily by two Australian creditors’ schemes of arrangement.  To implement the Recapitalisation in the United States, the Company intends to seek recognition of the Australian creditors' schemes of arrangement under Chapter 15 of the U.S. Bankruptcy Code. Employees, suppliers and customers will not be impacted by this filing. This will require the approval of shareholders at an extraordinary general meeting to be convened by the Company in August 2021.

We will continue to keep stakeholders apprised of our progress. For more information, please see the documents below.

CHAPTER 15 FILING - RECOGNITION OF AUSTRALIAN CREDITOR SCHEME IN THE UNITED STATES

Chapter 15 case is an extension of the primary proceedings occurring in Australia. It will assist the company’s restructuring actions in Australia by allowing us to seek protection from the U.S. bankruptcy court while the organization implements its restructuring through the Australian proceedings. As with the schemes of arrangement in Australia, the chapter 15 filing does not affect our day-to-day operations. Chapter 15 cases do not impose any restrictions or limitations on a company’s ability to operate its business, pay its employees, obtain financing, incur debt, enter into new contracts or continue to perform under existing contracts, or acquire or dispose of assets. Simply put, employees, suppliers, customers and others can expect no changes from these activities. The sole purpose is to make sure the restructuring proceedings in Australia are given full force and effect in the United States.

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