Pacific Drilling files for Chapter 11 Bankruptcy

Offshore drilling company Pacific Drilling has filed for Chapter 11 Bankruptcy, following a recent decision of bondholders not to extend the bond maturity date.

The company, owning a fleet of ultra deepwater drillships, said on Monday that it and it subsidiaries had filed for Chapter 11, with the aim to optimize its capital structure pending recovery in the floating rig drilling industry.

“The company intends to use the Chapter 11 process to pursue a comprehensive restructuring of the company’s approximately $3.0 billion in principal amount of outstanding funded debt.”

Pacific Drilling said Chapter 11 would provide it a respite from creditor claims in order to explore alternatives to reorganize “in a manner that maximizes the enterprise value of the company and is fair to all stakeholders.”

In a statement on Monday, the company said it would continue its “world-wide operations usual and to perform and pay all obligations incurred during its Chapter 11 case in full, subject to court approval.”

“We enter Chapter 11 with a strong cash position and the dedicated team necessary to continue to deliver the highest quality service to our customers in the safest and most efficient manner,” Chief Executive Officer, Paul Reese, said. “Throughout the Chapter 11 process, we anticipate using our strong cash position to meet all ongoing obligations to our employees, customers, vendors, suppliers and others.”