Offshore drilling contractor Diamond Offshore has began voluntary Chapter 11 proceedings to restructure and strengthen its stability sheet.

According to its assertion on Monday, Diamond and choose subsidiaries have filed voluntary petitions for reorganization underneath Chapter 11 of the U.S. Bankruptcy Code within the U.S. Bankruptcy Court for the Southern District of Texas.

Diamond defined that it intends to make use of the proceedings to restructure and strengthen its stability sheet and obtain a extra sustainable debt profile.

The firm and its advisors are pursuing negotiations with its key stakeholders relating to a complete restructuring plan to handle the capital construction.

Diamond famous it has adequate capital to fund its international operations within the bizarre course and to make continued investments in security and reliability through the reorganization proceedings and doesn’t require further post-petition financing at the moment.

Marc Edwards, President and Chief Executive Officer, stated: “After a cautious and diligent evaluation of our monetary alternate options, the Board of Directors and administration, together with our advisors, concluded that one of the best path ahead for Diamond and its stakeholders is to hunt Chapter 11 safety.

Through this course of, we intend to restructure our stability sheet to realize a extra sustainable debt degree to reposition the enterprise for long-term success”.

In latest firm information, Diamond Offshore received a contract cancellation from Beach Energy for the Ocean Onyx drilling rig.

The rig was supposed for use for the event of Beach’s undeveloped Otway Basin fuel reserves.

The publish Diamond Offshore seeks Chapter 11 safety appeared first on Offshore Energy.

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