Hercules Offshore plans to emerge from chapter 11 protection today, becoming one of the first embattled oil and gas firm to restructure since the slump began, the Houston Chronicle reported today. The embattled shallow-water rig contractor worked for months with creditors to hammer out an agreement to convert most of its corporate debt into shares. Upon emergence, Hercules’ existing debt will be terminated, new shares will be issued and it will receive funding for a new $450 million term loan. Hercules lost $95.4 million, or 59 cents per diluted share, for the three-month period ending Sept. 30. That’s deeper than the loss of $88.6 million, or 55 cents per diluted share, the company posted the same time last year. Read more.
For more information and analysis of oil and gas bankruptcies, be sure to pick up a copy of ABI’s When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy.
