HOUSTON, April 27, 2020 /PRNewswire/ -- Diamond Offshore
Drilling, Inc. (NYSE: DO) ("Diamond" or "the Company") today
announced that the Company and select subsidiaries have filed
voluntary petitions for reorganization under chapter 11 of the U.S.
Bankruptcy Code in the U.S. Bankruptcy Court for the Southern
District of Texas (the "Chapter 11
Cases"). Diamond intends to use the proceedings to restructure and
strengthen its balance sheet and achieve a more sustainable debt
profile, while continuing to focus on safe, reliable, and efficient
contract drilling services for its global clients.
The Company and its advisors are pursuing negotiations with its
key stakeholders regarding a comprehensive restructuring plan to
address the capital structure. Diamond has sufficient capital to
fund its global operations in the ordinary course and to make
continued investments in safety and reliability during the
reorganization proceedings and does not require additional
postpetition financing at this time.
Marc Edwards, President and Chief
Executive Officer, said "After a careful and diligent review of our
financial alternatives, the Board of Directors and management,
along with our advisors, concluded that the best path forward for
Diamond and its stakeholders is to seek chapter 11 protection.
Through this process, we intend to restructure our balance sheet to
achieve a more sustainable debt level to reposition the business
for long-term success."
Mr. Edwards continued, "Diamond remains focused on maintaining
its high standards as it relates to safety and operational
excellence during the chapter 11 process. Our clients and vendors
should expect business as usual across our organization as our
world class team will stay steadfast on our collective goal of
providing superior operations that clients have come to expect from
Diamond Offshore."
In addition to Diamond, the following Company subsidiaries are
included in the chapter 11 filings:
- Diamond Offshore Finance Company
- Diamond Offshore Development Company
- Diamond Offshore Services Company
- Diamond Offshore Management Company
- Diamond Offshore Company
- Arethusa Off-Shore Company
- Diamond Offshore General Company
- Diamond Offshore (Brazil)
L.L.C.
- Diamond Offshore Holding, L.L.C.
- Diamond Foreign Asset Company
- Diamond Offshore International Limited
- Diamond Rig Investments Limited
- Diamond Offshore Limited
- Diamond Offshore Drilling (UK) Limited
Additional information regarding the Chapter 11 Cases will be
available at http://www.diamondoffshore.com/restructuring. Court
filings and information about the claims process are available at
https://cases.primeclerk.com/Diamond. Questions should be directed
to the Company's claims agent, Prime Clerk, by email to
diamondinfo@primeclerk.com or by phone at +1 877-720-6570 (toll
free) or + 1 929-955-3417 (toll).
Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as
the Company's legal counsel and Alvarez & Marsal is serving as
the Company's restructuring advisor. Lazard Frères & Co. LLC is serving
as financial advisor to the Company.
The Company expects to file its Quarterly Report on Form 10-Q
for the fiscal quarter ended March 31,
2020 on or about May 4, 2020.
The Company will not issue an earnings press release or hold a
conference call to discuss the Company's first quarter results.
ABOUT DIAMOND OFFSHORE
Diamond Offshore is a leader in offshore drilling, providing
innovation, thought leadership and contract drilling services to
solve complex deepwater challenges around the globe. Additional
information and access to the Company's SEC filings are available
at www.diamondoffshore.com.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release are forward-looking
statements within the meaning of and made pursuant to the safe
harbor provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. In addition, Company representatives may from time to time
make oral forward-looking statements. All statements, other than
statements of historical facts, are forward-looking statements.
Forward-looking statements may be identified by the words
"anticipate," believe," "estimate," "expect," "intend," "plan,"
"project," "may," "will," "could," "should," "seek" and similar
expressions. Forward-looking statements reflect the Company's
current expectations and assumptions regarding its business, the
economy and other future events and conditions and are based on
currently available financial, economic and competitive data and
the Company's current business plans. Actual results could vary
materially depending on risks and uncertainties that may affect the
Company's operations, markets, services, prices and other factors
as discussed in the Risk Factors section of the Company's filings
with the Securities and Exchange Commission (the "SEC"). While
management believes the Company's assumptions are reasonable, the
Company cautions against relying on any forward-looking statements
as it is very difficult to predict the impact of known factors, and
it is impossible for management to anticipate all factors that
could affect the Company's actual results. Important factors that
could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, the
Debtors' ability to obtain the approval of the Bankruptcy Court
with respect to motions filed in the Chapter 11 Cases and the
outcomes of Bankruptcy Court rulings and the Chapter 11 Cases in
general, the effectiveness of the overall restructuring activities
pursuant to the Chapter 11 Cases and any additional strategies that
the Debtors may employ to address their liquidity and capital
resources, the actions and decisions of creditors, regulators and
other third parties that have an interest in the Chapter 11 Cases,
restrictions on the Debtors due to the terms of any
debtor-in-possession credit facility that the Debtors may enter
into in connection with the Chapter 11 Cases and restrictions
imposed by the Bankruptcy Court, increased legal and other
professional costs necessary to execute the Debtors' restructuring,
the trading price and volatility of the Company's common stock and
the effects of the Chapter 11 Cases on the Company's continued
listing on the New York Stock Exchange, the effects and the length
of the 2019 novel coronavirus (COVID-19) pandemic and the other
factors listed in the Company's SEC filings. For a more detailed
discussion of these and other risk factors, see the Risk Factors
section in the Company's most recent Annual Report on Form 10-K and
the Company's other filings made with the SEC. All forward-looking
statements are expressly qualified in their entirety by this
cautionary notice. The forward-looking statements made by the
Company and Company representatives speak only as of the date on
which they are made. Factors or events that could cause actual
results to differ may emerge from time to time. The Company
undertakes no obligation to publicly update or revise any
forward-looking statement as a result of new information, future
events or otherwise, except as otherwise required by law.
Contact:
Samir Ali
Vice President, Investor Relations
& Corporate Development
(281) 647-4035
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SOURCE Diamond Offshore Drilling, Inc.