Tuscany International Drilling and Tuscany International Holdings (U.S.A.) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 14-10193. The Company, which provides international drilling, completion, workover, and equipment rental oilfield services, is represented by Michael R. Nestor/Kara Hammond Coyle of Young Conaway Stargatt & Taylor and Mitchell A. Seider/Keith A. Simon of Latham & Watkins. The Company explains, “The oilfield services industry is highly competitive. Oilfield service companies complete primarily on a regional basis, and competition varies significantly from region to region at any particular time. The Tuscany Entities compete directly with various international and local companies in each region in which they operate. Their revenue and profitability depend largely on their rig utilization rates, which are affected by their ability to enter into contract with new or existing customers, the length of the contracts, and the availability of their rigs.” The Company also announced its intention to commence ancillary proceedings in the Court of Queen’s Bench of Alberta under the Companies’ Creditors Arrangement Act (CCAA) to seek recognition of the Chapter 11 proceedings and certain related relief. Other than Tuscany International Holdings (U.S.A.), none of the Company’s other subsidiaries are parties to the Chapter 11 or CCAA proceedings. Tuscany International Drilling will enter into a fourth amended and restated senior secured guaranteed credit agreement with Credit Suisse, Cayman Islands Branch (as administrative agent) and its various lenders and has already entered into a restructuring support agreement Cayman Islands Branch and certain of its lenders. Pursuant to the amended credit agreement, certain of its lenders will provide a new credit facility to the Company in an aggregate principal amount of $35 million. The Company and its lenders have agreed, subject to the terms of the support agreement, to pursue a balance sheet restructuring, and the support agreement contemplates a bidding and marketing process to seek strategic alternatives intended to maximize value for stakeholders.
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector--with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.