Diamond Offshore Drilling Inc. announced today that it has filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. The Houston-based offshore driller operates a fleet of 15 floating rigs — 11 semisubmersibles and four drillships.
Diamond Offshore said it intends to use the proceedings to restructure and strengthen its balance sheet and achieve a more sustainable debt profile, while continuing to focus on safe, reliable, and efficient contract drilling services for its global clients.
The company is pursuing negotiations with its key stakeholders regarding a comprehensive restructuring plan to address the capital structure. Diamond said it has sufficient capital to fund its global operations and to make continued investments in safety and reliability during the reorganization proceedings, and currently does not require additional post-petition financing.
“After a careful and diligent review of our financial alternatives, the Board of Directors and management, along with our advisors, concluded that the best path forward for Diamond and its stakeholders is to seek Chapter 11
protection," Marc Edwards, president and chief executive officer, said in a statement. "Through this process, we intend to restructure our balance sheet to achieve a more sustainable debt level to reposition the business for long-term success.”
Edwards continued, “Diamond remains focused on maintaining its high standards as it relates to safety and operational excellence during the Chapter 11 process. Our clients and vendors should expect business as usual across our organization as our world class team will stay steadfast on our collective goal of providing superior operations that clients have come to expect from Diamond Offshore.”
In addition to Diamond Offshore, the following subsidiaries are included in the bankruptcy filings:
• Diamond Offshore Finance Co.
• Diamond Offshore Development Co.
• Diamond Offshore Services Co.
• Diamond Offshore Management Co.
• Diamond Offshore Co.
• Arethusa Off-Shore Co.
• Diamond Offshore General Co.
• Diamond Offshore (Brazil) LLC
• Diamond Offshore Holding LLC
• Diamond Foreign Asset Co.
• Diamond Offshore International Ltd.
• Diamond Rig Investments Ltd.
• Diamond Offshore Ltd.
• Diamond Offshore Drilling (UK) Ltd.
The company expects to file its quarterly report for the fiscal quarter ended March
31, 2020, on or about May 4, 2020. The company will not issue an earnings press release or hold
a conference call to discuss first quarter results.
The company also received notification today from the New York Stock Exchange that it has commenced proceedings to delist the company's shares of common stock.