Houston: Drilling contractor Hercules Offshore’s shares plunged 62% on the NASDAQ yesterday after it was announced that the company would undergo a restructuring process and planned to file Chapter 11.
While Hercules said customer relationships will be unimpaired by the process, many industry commentators doubt whether the long term future of the company is a positive one.
A key part of the restructuring will see senior notes worth $1.2bn converted to shares, and an additional $450m of new capital provided by senior noteholders to fund newbuild Hercules Highlander and to keep the company liquid.
