Hercules Settles Jackup 265 Property Damage Claim
by Hercules Offshore, Inc.
|Monday, December 23, 2013
Hercules Offshore, Inc. received payment from its insurance underwriters for the previously-disclosed damage to its Hercules 265 (250' MC) jackup Dec. 20. The Company's insurance underwriters determined that the rig is a constructive total loss, and the Company received gross insurance proceeds of $50 million. As a result of this insurance collection, the Company anticipates recording an insurance gain of approximately $31 million in the fourth quarter 2013. The Company and its insurance underwriters continue to negotiate the insurance recovery amounts for costs related to the salvage of the Rig and certain other insured losses.
Hercules closed the sale of its Hercules 170 (170' ILC) jackup for a purchase price of $8.3 million Dec. 20. As a result of the sale, the Company expects to record an impairment charge of approximately $12 million in the fourth quarter 2013.
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