Offshore drillers Valaris and Noble Corporation stop making interest payments

Under pressure offshore drillers Valaris and Noble Corporation have both stopped making interest payments. 

Valaris disclosed after-hours yesterday that it will not make two payments that were due on Wednesday: a $7.6m interest payment on its 4.75% senior notes due 2024 and an $11.7m interest payment on its 5.85% senior notes due 2044.

The company, which raised eyebrows earlier this month by electing to scrap three modern drillships, said it has elected to enter a 30-day grace period, which expires on August 15.

Valaris said it is continuing to have discussions with its lenders and bondholders about the terms of a potential comprehensive debt restructuring.

Meanwhile, Noble Corporation also revealed after-hours yesterday that a subsidiary had not paid a $15m interest payment on its 7.75% senior notes due 2024. The company has a a 30-day grace period before such non-payment constitutes an event of default.

Noble Corp, which posted a $1.1bn Q1 loss, said it remains in talks with creditors about a potential consensual restructuring transaction.