Offshore drilling company Dolphin Drilling ASA has filed for bankruptcy after a failure of creditors to agree on the terms for a consensual restructuring.
The Norwegian drilling company said on Wednesday: “Regretfully, the creditors of Dolphin Drilling ASA have not been able to agree on the terms for a consensual restructuring, and the secured creditors have demanded payment of all amounts outstanding under the secured debt of the Company.”
As per the resolution of the board, Dolphin Drilling ASA said it would file for bankruptcy on Wednesday.
Dolphin Drilling ASA, which is insolvent and operating at a loss , has earlier this week said it might file for bankruptcy unless the relevant creditors agreed on the recapitalization.
As reported in April, the majority of lenders under the company’s $2 billion secured credit facility entered into an agreement for the reorganization and recapitalization of the drilling business of the company.
The agreed recapitalization of the drilling business included the sale of the Bolette Dolphin drillship to refocus the group’s drilling business on its mid-water fleet while the mid-water drilling business of the group was agreed to be transferred to a new holding company, controlled by the secured lenders.
Dolphin Drilling ASA said on Monday that following the secured lenders’ agreement to carry out a recapitalization as reported in April, the company had made “best efforts to facilitate an agreement on the Drilling Recapitalization among all relevant creditors,” but an agreement was not reached.