NYSE to delist Diamond shares after bankruptcy filing

Following its filing for Chapter 11 bankruptcy protection, offshore drilling contractor Diamond Offshore Drilling has received a delisting notice from the New York Stock Exchange (NYSE).

Ocean Patriot rig; Source: Diamond

According to its statement on Monday, Diamond received notification from the staff of NYSE Regulation that it has determined to start proceedings to delist the company’s shares of common stock.

NYSE Regulation determined that the company was no longer suitable for listing after the company’s disclosure that it and select subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.

Diamond said it does not presently anticipate exercising its right to appeal NYSE Regulation’s delisting determination.

The company added that it expects that its common stock will be quoted on the OTC Pink markets.

NYSE listing for several other offshore drilling contractors is at risk due to the difficult market situation.

Namely, Noble Corporation, Seadrill, Pacific Drilling, and Valaris have all recently received notices from the NYSE stating that they do not currently satisfy the minimum share price standard for continued listing of their common shares.