Diamond Offshore commences voluntary chapter 11 proceedings to restructure balance sheet
Diamond Offshore Drilling announced that the company and select subsidiaries have filed voluntary petitions for reorganization 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 reorganization proceedings and does not require additional postpetition financing at this time.
“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,” Marc Edwards, President and Chief Executive Officer, said. 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.”
“Diamond remains focused on maintaining its high standards as it relates to safety and operational excellence during the chapter 11 process,” Mr Edwards added. “Our clients and vendors should expect business as usual across our organization 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.”
In addition to Diamond, the following subsidiaries are included in the chapter 11 filings:
- Diamond Offshore Finance Company
- Diamond Offshore Development Company
- Diamond Offshore Services Company
- Diamond Offshore Management Company
- Diamond Offshore Company
- Arethusa Off-Shore Company
- Diamond Offshore General Company
- Diamond Offshore (Brazil) L.L.C.
- Diamond Offshore Holding, L.L.C.
- Diamond Foreign Asset Company
- Diamond Offshore International Limited
- Diamond Rig Investments Limited
- Diamond Offshore Limited
- Diamond Offshore Drilling (UK) Limited
The company expects to file its quarterly report on form 10-Q for the fiscal quarter ended 31 March 2020 on or about 4 May 2020. The company will not issue an earnings press release or hold a conference call to discuss the company’s Q1 results.