Drilling rig contractor Ocean RIG files for bankruptcy protection

Offshore staff

NEW YORK – Offshore drilling rig contractor Ocean RIG UDW Inc. has filed for Chapter 15 bankruptcy protection in a US court, according to Reuters.

The Cyprus-based company, which had $3.25 billion in debt as of Dec. 31, filed for bankruptcy in the United States Bankruptcy Court for Southern District of New York on Monday.

Under US bankruptcy laws, Chapter 15 grants a foreign company protection from creditors looking to seize its assets in the country. The company said on Tuesday that it entered into an agreement with creditors representing over 72% of Ocean RIG’s outstanding consolidated indebtedness for a financial restructuring.

Ocean Rig’s chief executive, George Economou, said last year that the company would consider alternatives, including a possible reorganization under US bankruptcy laws.

03/28/17