Offshore drilling contractor files for Chapter 11 bankruptcy, the second to do so this year.
Courtesy Noble Corp.
The Noble Bob Douglas drillship.
Offshore staff
LONDON – Noble Corp. says that it has filed for Chapter 11 bankruptcy, and that it has entered into a restructuring support agreement with two groups consisting of its largest bondholders. The deal will eliminate all $3.4 billion of its existing bond debt.Â
Noble says it will use the bankruptcy process to enable bondholders to exchange their bond holdings for equity in the reorganized company. In addition to that debt exchange, bondholders have also agreed to invest an additional $200 million into the company via new second-lien notes.
Meanwhile, the driller says it has secured a $675-million credit facility with other lenders, providing it with additional liquidity once it emerges from bankruptcy. Noble says that its improved balance sheet and liquidity following this process will allow it to operate and invest in its assets.Â
Noble is the second major offshore driller to file for bankruptcy this year, following Diamond Offshore Drilling in April.
