Offshore drilling contractor Pacific Drilling announced on Sunday that it has filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York.
The company said it intends to use the Chapter 11 process to pursue a comprehensive restructuring of its approximate $3 billion in outstanding debt amid the unprecedented and prolonged downturn in the floating drilling rig industry.
Pacific Drilling said it intends to continue worldwide operations as usual with approximately $350 million in cash and its fleet of seven advanced high-specification drillships, which are among the most advanced in the world. The company added that it also intends to perform and pay all obligations incurred throughout the Chapter 11 process.
“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,” said Chief Executive Officer, Paul Reese. “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.”
Coinciding with its bankruptcy announcement, the company also announced a net loss $157.5 million in the third-quarter of 2017, bringing its year-to-date losses to $395 million. In the first nine months of 2016, the company reported a net profit of $5.8 million.