Paragon Offshore Plc said on Friday it was evaluating its options after a U.S. judge rejected the offshore rig contractor's plan to exit bankruptcy, an unusual setback for a corporate Chapter 11 proceeding. In an oral ruling in U.S. Bankruptcy Court in the District of Delaware, Judge Christopher Sontchi said the plan was not feasible because it removes too much cash from the company during the current downturn. The ruling does not preclude the company from a restructuring under a different plan, he said. "The company continues to believe, but cannot provide any assurances, that a positive resolution of the company's restructuring process can be achieved," Paragon said in a statement following the ruling.