Hercules Offshore files for bankruptcy

Houston-based marine services company Hercules Offshore announced Wednesday in a press release that it had filed for Chapter 11 bankruptcy in the US.

The pre-packaged bankruptcy plan will allow the company to convert nearly 97 percent of outstanding senior notes to new common equity. It will also enable some senior note holders to be provided with $450 million worth of new debt financing.

The plan has been approved by more than 300 shareholders holding senior notes amounting to a total of more than $1.2 billion. The plan was rejected by only two shareholders with combined senior note holdings of $320,000.

“Today’s filing is the next step in our financial restructuring. We are working toward a new capital structure which will provide a better foundation for Hercules to meet the challenges in the global offshore drilling market due to the downcycle in crude oil prices and expected influx of newbuild jack-up rigs over the coming years,” president and CEO John T. Rynd said in a company statement.

The company does not anticipate any interruption in normal day-to-day operations.

For more news and features on the United States, click here.