Diamond Offshore files for bankruptcy and plunges its actions

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103


Diamond Offshore Drilling Inc. shares
TO DO,
+ 13.06%

The drilling record dropped 61% on Monday after the oil driller said he had filed for bankruptcy in the South Texas district. The company said it plans to use bankruptcy to restructure and strengthen its balance sheet and achieve a “more sustainable” debt profile. Diamond said that she had sufficient capital to finance her operations during the reorganization and that she did not need additional funding after the petition. “After careful and diligent review of our financial alternatives, the board and management, as well as our advisors, concluded that the best way forward for Diamond and its stakeholders was to seek Chapter 11 protection,” said general manager Marc Edwards. “Through this process, we intend to restructure our balance sheet to achieve a more sustainable level of debt in order to reposition the business for long-term success. The title had plunged 80.4% in the past three months to Friday, while crude oil futures
CL00,
-16.76%

had dropped 73.2% and the S&P 500
SPX,
+ 1.39%

had lost 12.5%.

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