Vantage Drilling has reached a deal with its creditors who hold $1.6billion of its debts that will see its subsidiary pushed into bankruptcy.
The Houston-based drilling contractor has agreed a raft of measures including the move to force its Offshore Group Investment Ltd into bankruptcy. The plan also provides for a debt-for-equity swap that will result in existing term loan lenders and secured note holders converting their loans and notes into equity.
OGIL expects to commence cases in the US bankruptcy court today.
Vantage and OGIL chief executive Paul Bragg, said: “The agreement we’ve reached with our lenders and note holders will eliminate more than $152 million of annual cash interest expense and position us with a strong, deleveraged balance sheet expected to have more than $242 million of cash on hand.”
The company’s fleet includes three ultra-deepwater drillships the Platinum Explorer, the Titanium Explorer and the Tungsten Explorer, as well as four Baker Marine Pacific Class 375 ultra-premium jackup drilling rigs.
The downturn in oil prices, and knock-on effect on drilling, saw Vantage delist from the New York Stock Exchange in September.
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