Ability Drilling to File Bankruptcy Petition Wednesday Morning
Ability Drilling has today decided to file a bankruptcy petition to Nordhordaland Tingrett on Wednesday morning before opening of the
stock exchange. The board considers that sale of assets will not be sufficient to cover liabilities. This is a consequence of TTS Sense
AS (TTS) failure to meet its obligations to deliver rigs according to contract, or perform contractual guarantee work. Ability Drilling has
tried to sell rigs, however TTS has not been able to confirm future delivery of services for new customers. Thus, the rigs has not been
Ability Drilling's total claim against TTS for inadequate deliveries amounts to NOK 293.4 million. It is the board's and the management's
judgment that legal exposure of TTS' breach through a bankruptcy administrator will provide creditors and shareholders with a better
chance of regaining values than continued operations. The board and the management will be at the disposal of the bankruptcy administrator.
It has not been possible for Ability Drilling to raise capital, as the rigs are not functioning, and as TTS cannot meet delivery deadlines and will not provide service or guarantee work on the rigs according to contracts.
- Ability Drilling to File Bankruptcy Petition Wednesday Morning (May 26)
- Ability Drilling, TTS Sense Revise Delivery Schedule of Future Rigs (Jan 23)
- Ability Calls Off Frame Agreement Option, Land Rig to Be Delivered in 2010 (Jan 23)