Vantage Drilling Files for Bankruptcy Protection
03 12월 2015 - 11:40PM
Dow Jones News
Vantage Drilling Co. filed for bankruptcy protection late
Wednesday night after reaching a deal on a debt-for-equity swap
with its lenders and bondholders.
The company filed for chapter 11 protection In U.S. Bankruptcy
Court in Wilmington, Del., along with affiliate Offshore Group
Investment Ltd., with a restructuring pact that would convert $1.6
billion in debt into equity in the reorganized business plus $750
million in new senior subordinated bonds.
Houston-based Vantage is a contract rig operator. It had earlier
hired financial advisers Lazard Freres & Co. to implement a
review of the company's financial and strategic options.
"Vantage and OGIL have been working on a path forward to
deleverage its capital structure and take advantage of market
opportunities with a strong balance sheet in light of market
conditions," said Paul Bragg, Vantage and OGIL's chief executive
officer.
Like others in the oil-and-gas industry, Vantage has been
hamstrung by stubbornly low oil prices. Over the past year and a
half, the price for U.S. crude oil has dropped from more than $100
a barrel to the low $40s. In the past year, rig operators Hercules
Offshore Inc. and Cal Dive International Inc. have also filed for
bankruptcy.
Although a depression in oil and gas prices this year compounded
troubles for these rig contractors, the offshore drilling sector
has been facing an oversupply of drilling rigs since late 2013.
With customers turning their focus to onshore shale gas drilling,
offshore operations have seen customers reduce their
expenditures.
Vantage's deal with its lenders and bondholders slashes $152
million in annual interest expense and will leave the company,
which listed total debt of $2.6 billion earlier this year, with
$242 million of cash on hand.
Mr. Bragg said Vantage and OGIL will stay open during the
bankruptcy case and business operations will be unaffected. F3
Capital, an entity 100% owned and controlled by Hsin-Chi Su, who is
also known as Nobu Su, a former director of Vantage Drilling, owns
32.9% of the company, according to court papers.
The law firm of Weil, Gotshal & Manges is handling the
chapter 11 case and Lazard is serving as financial adviser to
Vantage and OGIL.
Stephanie Gleason contributed to this article.
Write to Patrick Fitzgerald at patrick.fitzgerald@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
December 03, 2015 09:25 ET (14:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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