$PACD Pacific Drilling to consider Chapter 11 as debt grows to $3B
Pacific Drilling (NYSE:PACD) said in its Q2 earnings report today that it is considering filing for Chapter 11 bankruptcy protection, as total outstanding debt swells to $3B and the company is on the edge of defaulting on loan agreements at the end of September.
PACD launched a private consent solicitation on July 5 in a bid to extend the maturity date of its 2017 senior secured notes from Dec. 1 to June, 1, 2018, but the company failed to receive sufficient consent, and the solicitation expired on Aug. 2.
In Q2, PACD chalked up a $138M loss vs. an $8M profit in the year-ago quarter, and revenues plunged 67% to $67M from $203M.
Longtime CEO Chris Beckett resigned earlier this week, succeeded by CFO Paul Reese.
