Hercules Offshore said it plans to file for creditor protection in the coming weeks in a bid to end the year with a restructured balance sheet.
The company has been struggling for a number of months because of an oversupplied rig markets and slumping oil prices that have forced producers to reduce spending.
Last year it reduced its headcount by around 15% and last month started talks with creditors for an orderly bankruptcy filing.
In the second quarter of the year it posed a second-quarter net loss of $88.3million, compared with a net income of $6.6million in the same period of 2014.
The company’s balance sheet lists $266million in current assets and $1.35billion in current liabilities.
Hercules said earlier this week it has support for the filing from holders of over two thirds of its collective outstanding debt.