According to the U.S. Bankruptcy Court docket, Hercules Offshore and 14 affiliated Debtors filed for Chapter 11 protection, simultaneously announcing a pre-negotiated restructuring agreement. The Company provides shallow-water drilling and marine services to the oil and natural gas exploration and production industry.
According to documents filed with the Court, “The shallow-water offshore markets in which Hercules operates are highly competitive. Contracts are typically awarded on a competitive bid basis. Pricing is often the primary factor in determining which qualified contractor is awarded a job, although technical capability of service and equipment, unit availability, unit location, safety record and crew quality may also be considered. Certain competitors in the shallow-water business may have greater financial and other resources than Hercules presently has. As a result, these competitors may have a better ability to withstand periods of low utilization, compete more effectively on the basis of price, build new rigs, acquire existing rigs, and make technological improvements to existing equipment or replace equipment that becomes obsolete.”
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