Parker Drilling Files for Chapter 11 Bankruptcy
Houston-based Parker Drilling Company has filed for Chapter 11 bankruptcy, the company announced Dec. 12.
The oilfield services provider entered into a restructuring support agreement (RSA) with debtors to strengthen its financial foundation and position it to capitalize on further market opportunities. To implement the terms of the RSA, Parker has voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.
Parker Drilling’s proposed plan will reduce two-thirds of funded debt and inject $95 million of equity capital through a backstopped rights offering, the company said. The plan is subject to court approval.
“Our operational results have continued to improve this year, and we anticipate new opportunities for profitable growth across our drilling and rental tools businesses. The steps we are announcing today will ensure that we have the appropriate capital structure to take advantage of these opportunities to strategically grow our assets, our global footprint and our suite of products and services,” Gary Rich, Parker Drilling CEO, said in a company statement. “We are confident that by resolving our legacy balance sheet issues, we will enable Parker to continue executing a strategy to build greater scale in core markets and expand strategic offerings…”
The company said it intends to pay employee wages and benefits as usual and expects minimal interruption to employees, customers and vendors through the restructuring process.
The restructuring process is expected to be completed in the first quarter of 2019.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.