Paragon Offshore set to declare Chapter 11 bankruptcy

Heavily indebted rig operator Paragon Offshore will file for Chapter 11 bankruptcy this weekend.

The Houston-based company announced it has come to terms with creditors on restructuring its $2.7bn of debts. It will cut about $1.1bn of that debt. The parties had been in talks since December.

Paragon had opted not to make a $15.4m bond interest payment last month and that triggered a 30-day grace period before default, so restructuring and bankruptcy were the next logical steps.

Like most others in the offshore industry, Paragon has been hit by the plunge in crude prices, which has seen its clients drastically reduce drilling activity.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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