Diamond Offshore Drilling Files for Bankruptcy
Diamond Offshore Drilling (NYSE: DO) filed for Chapter 11 Bankruptcy over the weekend, becoming the latest energy company aiming to restructure its debt. The widely anticipated move comes just a couple of weeks after the offshore drilling contractor skipped an interest payment.
Diamond Offshore intends to use the bankruptcy proceedings to restructure and strengthen its balance sheet so that it can have a more sustainable capital structure. The company entered this year with about $2 billion of long-term debt, with the nearest upcoming maturity in 2023. It had lots of liquidity, with $156 million in cash and nothing drawn on its $950 million credit facility.
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Source Fool.com
