Hercules Offshore Inc. announced today that it had formed a special committee to explore strategic alternatives in an effort to maximize the company’s value. This could include a sale of the Houston-based rig contractor
In addition to a sale, other alternatives include a merger or share exchange, the sale of some or all of the company's assets, and a recapitalization of the company.
The special committee is authorized to explore, review, and evaluate any potential strategic transaction involving the company, but was not formed in response to any specific proposal or an approach by a third party, the company said.
The company said that there were no guarantees that the committee or the board would pursue any strategic alternatives and that the company would not comment on any future proposals that the committee might consider.
The committee has engaged PJT Partners as its financial advisor and Akin Gump Strauss Hauer & Feld LLP as its legal counsel.
On Nov. 6, Hercules emerged from Chapter 11 bankruptcy.
As of Feb. 9, the company had approximately $514 million in cash, which includes $200 million held in escrow for the final delivery payment for the Hercules Highlander, and $450 million in total debt.
Hercules Offshore operates a fleet of 27 jackup rigs, including one rig under construction, and 19 liftboats.
