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Diamond Offshore begins Chapter 11 proceedings

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Oilfield Technology,


Diamond Offshore Drilling 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 intends to use the proceedings to restructure and 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 and its advisors are pursuing negotiations with its key stakeholders regarding a comprehensive restructuring plan to address the capital structure. Diamond has sufficient capital to fund its global operations in the ordinary course and to make continued investments in safety and reliability during the reorganisation proceedings and does not require additional post-petition financing at this time.

Marc Edwards, President and CEO, said: “After a careful and diligent review of our financial alternatives, the Board of Directors and management, along with our advisors, concluded that the best path forward for Diamond and its stakeholders is to seek chapter 11 protection. 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.”

Edwards continued: “Diamond remains focused on maintaining its high standards as it relates to safety and operational excellence during the chapter 11 process. Our clients and vendors should expect business as usual across our organisation as our world class team will stay steadfast on our collective goal of providing superior operations that clients have come to expect from Diamond Offshore.”

Read the article online at: https://www.oilfieldtechnology.com/offshore-and-subsea/28042020/diamond-offshore-begins-chapter-11-proceedings/

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