Parker Drilling Co. applied for bankruptcy protection
On Wednesday, an oil service provider applied for bankruptcy protection under an agreement with a group of debtors. The measure is to allow Parker Drilling Co. to restructure quickly. The plan presented by the Company will reduce capital debt by two thirds. The Company expects to exit bankruptcy protection at the beginning of 2019 and the Company’s management remains unchanged.
Parker Drilling Co. indicated that the total amount of debt was USD 695.5 million. The company owes USD 585 million to unsecured bondholders, USD 2.18 million to National Oilwell Varco, USD 749 487 to Hi-Tech Tubular Service and USD 388 800 to Schlumberger NV. The value of the Company’s assets amounts to USD 937.2 million.
Parker Drilling Co. has difficulties in regaining strength after a sharp drop in crude oil prices four years ago. The recent drop in global crude oil futures to almost USD 61 per barrel threatens to delay the long-awaited recovery for offshore service companies. In order to make a profit, these companies usually serve more expensive projects requiring higher energy prices.