On June 5th and 6th, 2016, Houston-based energy firm Hercules Offshore Inc. and its affiliated debtors ("Hercules" or "Debtors") filed for Chapter 11 bankruptcy protection before the United States Bankruptcy Court for the District of Delaware.
Hercules is an offshore oil drilling services firm and rig operator, that was hit by the plunge in oil prices which briefly dipped below $30 several months after Hercules previously emerged from a chapter 11 bankruptcy November 2015. Hercules' assets include jackup rigs and liftboats. The company also provides various shallow-water offshore services, such as drilling, platform inspection and decommissioning.
Hercules has presented a prepackaged bankruptcy plan, which has received the endorsement of 99.7% of its first-lien lenders. Hercules will use the bankruptcy process to liquidate its operations. Notably, Hercules intends to fully compensate all unsecured creditors. Shareholders will receive cash upfront if they vote to accept the plan or will receive a portion of the proceeds from the asset sale if they vote against.
The Debtors' bankruptcy proceeding is pending before the Honorable Kevin J. Carey. The Debtors' first-day hearing is scheduled for June 7, 2016 at 11:30 a.m.
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