Hercules Offshore Inc. filed for bankruptcy protection, its second in just under a year after it could not find itself a buyer in the last few months amid a depressed market for oil drilling services.
According to CEO Troy Carson, the company was planning to sell off its assets in a ‘controlled-manner’ as it had the support of almost all the top lenders that helped it out of bankruptcy in November 2015.
A voting report stated that Hercules received support from lenders holding more than $249m in first-lien loans.
Hercules was said to court its stockholders, promising a “meaningful recovery” if they agreed to go along with the new plan. The company’s stock was created in the previous bankruptcy, when bondholders agreed to take equity in lieu of collecting their debts of $1.2bn.
According to court documents, shareholders were being offered between $12.5m and $41m, depending on how Hercules’s asset sales go, if they supported the bankruptcy wind-down plan. Otherwise, a negative vote would result in a recovery ranging from nothing to $27m.
Hercules’ international subsidiaries wouldn’t be included in the U.S. bankruptcy, but they would be part of the final sale process.