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Hercules Offshore extends forbearance putting newbuild jackup in jeopardy

Houston-based offshore drilling company Hercules Offshore has given itself some breathing space as it faces bankruptcy having defaulted on a $450m loan.

Creditors have agreed to extend a forbearance agreement through to May 31 as a solution is sought to stop the company falling into bankruptcy for a second time in less than a year.

The reprieve brings some bad news to Hercules, as during the forbearance period it will not have access to funds held in order to accept delivery of newbuild jackup rig Hercules Highlander from Singapore’s Jurong Shipyard.

Hercules said it is currently in discussions with the yard over the situation as unless the rig is accepted for delivery by May 5, the company will be in default of the shipbuilding contract.

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Grant Rowles

Grant spent nine years at Informa Group based in London, Sydney, Hong Kong and Singapore. He gained strong management experience in publishing, conferences and awards schemes in the shipping and legal areas, working on a number of titles including Lloyd's List. In 2009 Grant joined Seatrade responsible for the commercial development of Seatrade’s Asia products. In 2012, with Sam Chambers, he co-founded Asia Shipping Media.
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