Valaris Plc Filed For Bankruptcy
Aug 27, 2020
The epidemic has seen too many bankruptcies.Instead, Valaris Plc, the world's largest offshore drilling contractor, declared itself bankrupt. Valaris Plc, the world's largest offshore drilling contractor, filed for bankruptcy protection in the United States Monday to restructure its debt, Russia Today reported.
More than half of Valaris Plc's creditors agreed to swap more than $6.5 billion in debt for equity following the bankruptcy filing, which reportedly listed $7.85 billion in debt, and the company will receive $500 million in new financing from creditors.
Tom Burke, CEO of Valaris Plc, said the COVID-19 outbreak has exacerbated the dramatic contraction in the energy sector and companies must take steps to create a stronger company that can adapt to the industry's prolonged downturn.He also said the company will continue to serve its customers during the bankruptcy filing.
About Valaris Plc:
Founded 45 years ago (1975) and headquartered in London, United Kingdom, Valaris Plc was formed in 2019 by the merger of U.S. oil and gas drilling company Ensco Plc and offshore drilling contractor Rowan Companies Plc.
It is the world's largest offshore drilling company with 74 RIGS, including 50 offshore jackups, 16 drilling ships and 8 semi-submersible platform RIGS.The company became a public company in 1980 through an initial public offering.
Before it reached bankruptcy, Valaris Plc's financial position was already in doubt.At the end of July, Valaris Plc released its fiscal 2020 interim report. The data showed that during the reporting period, the company's operating revenue was $845 million, down 14.59% from the same period last year. The net profit attributable to common shareholders of the parent company was $-4.114 billion, down a whopping 46% from the same period last year.It employs 5,800 people and has a market value of less than 500 million yuan.
At last check, Valaris Plc was trading at 33 cents a share, giving it a market value of $65.83 million.
Source: CCTV Finance, Russia Today website, etc.
