Advertisement

Hercules Offshore Sale Approval Sought

Advertisement

Hercules Offshore filed with the U.S. Bankruptcy Court a motion for entry of an order (i) authorizing affiliate Debtor Cliffs Drilling to sell a jack up drilling rig named Hercules 208 and to pay related assets free and clear of all liens, claims and encumbrances.

The motion explains, “At present, the Debtors incur costs in the amount of approximately $3,000 per day to keep the Hercules 208 cold stacked….In accordance with the PSA, the Buyer has agreed to purchase the Hercules 208 for $1 million (the ‘Purchase Price’) free and clear of all liens, claims, encumbrances and other interests. Consummation of the Sale is subject to the fulfillment of certain conditions set forth in the PSA, including (i) the entry of the Sale Order by the Court and (ii) the consent to, and approval of, the Sale by the ‘First Lien Lenders’ under the Debtors’ prepetition first lien credit agreement, which is being sought.”

The motion continues, “Upon consummation of the Sale, the Debtors will pay a commission in the amount of $50,000 to Mitchen Anderson….Buyer shall pay in immediately available funds to Seller Account a non-refundable deposit of US$100,000, the ‘Deposit’ upon execution of the PSA.” The Court scheduled a December 13, 2016 hearing to consider the motion, with objections due by December 9, 2016.

Read more oil & gas bankruptcy news.