Hercules Offshore to File for Bankruptcy a Second Time

Hercules Offshore to File for Bankruptcy a Second Time
Hercules Offshore plans to file for prepackaged Chapter 11 bankruptcy, just six months after the rig contractor emerged from bankruptcy protection.

Reuters

May 27 (Reuters) - Hercules Offshore Inc said it planned to file for prepackaged Chapter 11 bankruptcy, just six months after the rig contractor emerged from bankruptcy protection.

The company said it had entered into a restructuring support agreement with some lenders, which will eventually allow it to place all its unsold assets into a wind-down vehicle until they can be sold.

Hercules Offshore said its international units would not be included in the bankruptcy filing, but would be a part of the sale process.

The company said in February that it was considering strategic options, including selling itself.

Hercules filed for Chapter 11 bankruptcy protection in August 2015 and emerged from bankruptcy in November.

"Since this time, the ongoing decline in oil prices, the consolidation of its U.S. customer base and the addition of new capacity have negatively impacted dayrates and demand for Hercules's services," the company said in a statement.

(Reporting by Anet Josline Pinto in Bengaluru; Editing by Kirti Pandey)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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