24 July 2015, News Wires – Jack-up owner Hercules Offshore said it expects to file for bankruptcy protection in about three weeks and hopes to emerge several months later with a restructured balance sheet.
The shallow-water contractor has been struggling for months as the jack-up market has been especially hard hit in the oil and gas downturn.
Last November, the company trimmed its workforce by 15%. In June, it reached a deal with creditors in a move that will leave those lenders with control of almost all of the equity of the company.
Hercules said on Thursday it has support for the filing from holders of over two thirds of its collective outstanding debt, Reuters reported.
It added that the pre-packaged process will reduce the time it spends in bankruptcy protection, which it hopes to leave early in the fourth quarter.
The company’s balance sheet lists $266 million in current assets and $1.35 billion in current liabilities.
Earlier in the week, Hercules posted a net loss of $88.3 million on revenue of $79.2 million for the second quarter 2015, compared to net income of $6.6 million on revenue of $243 million for the second quarter 2014.