After emerging from bankruptcy in November, Hercules Offshore has a plan to sell drilling rigs while filling bankruptcy for the second time since last summer.
The demand for their rigs has dropped since the waters have suddenly become overpopulated with drilling equipment. The plan includes slowly halting production by selling the remaining working rigs to pay its shareholders $12.5 million and distribute cash flow from the sales to their creditors. A.P Moeller-Maersk group is interested in their Hercules Highlander, designed for harsh environments. A lot of the older designs rest on the sea floor, making them unable to go deeper than the shallow waters of the Gulf of Mexico.
According to documents filed in April, Hercules denies allegations from creditors that international allies violated their new multimillion dollar loan.
Article written by HEI contributor Marcela Abarca.