Looking Ahead to a New Boart Longyear

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.

Boart Longyear