Valaris Files for Bankruptcy
Valaris (NYSE: VAL) has filed for Chapter 11 bankruptcy. The world's largest offshore drilling contractor is the latest company in that sector to go this route because of this year's steep decline in oil prices, following earlier filings by Noble Energy and Diamond Offshore Drilling. The company recently warned that bankruptcy was "imminent," so this official announcement comes as no surprise.
Valaris has entered into a restructuring support agreement and backstop commitment agreement with about half of its bondholders. These agreements will allow the company to convert its credit facility and unsecured notes into equity. Its creditors also will provide the company with $500 million of debt to help fund its operations. Lastly, the company expects to cancel its existing equity as part of this arrangement.
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Source Fool.com
