Diamond Offshore Drilling said the company and select subsidiaries have filed voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Southern District of Texas
Diamond Offshore said it intends to use the bankruptcy proceedings to undergo a comprehensive restructuring to strengthen its balance sheet and achieve a more sustainable debt profile while continuing to focus on safe, reliable, and efficient contract drilling services for its global clients.
The company said clients and vendors should expect business to proceed as usual. Diamond Offshore said it does not require additional post-petition financing at this time as it has sufficient capital to fund its global operations and to make continued investments in safety and reliability during the reorganisation.
Diamond Offshore president and chief executive Marc Edwards said this decision was taken by the board and management “after a careful and diligent review of our financial alternatives”.
Mr Edwards added “Through this process, we intend to restructure our balance sheet to achieve a more sustainable debt level to reposition the business for long-term success.”
In addition to the parent company, the following subsidiaries are included in the Chapter 11 filings:
Alvarez & Marsal will serve as the company’s restructuring advisor and Lazard Frères & Co will serving as financial advisor over the course of the restructuring process.
The company received notice of being delisted on the New York Stock Exchange and the company’s common stock commenced trading on the OTC Pink Market under ‘DOFSQ’.
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