Oil-and-gas contractor Cal Dive International Inc. is preparing for a potential Chapter 11 bankruptcy filing that could come as soon as the next few weeks, people familiar with the matter said, as the oil-price rout exacerbates the company’s business challenges.
A filing isn’t certain and depends in part on whether the Houston company can sell assets to raise cash, some of the people said.
has been seeking to sell assets and refinance some of its $286 million debt load, but warned this month it was evaluating bankruptcy and that it had skipped an interest payment on $2.2 million worth of convertible bonds, starting the clock on a 30-day grace period for a default on the notes.
The company, which sends divers under water to install and repair drilling platforms, pipes and other infrastructure, would be among the first energy-industry service providers to pursue an in-court debt reorganization since oil prices started dropping last summer. Commodity price shocks can leave these contractors particularly vulnerable, as the declines deter the construction of new wells and energy infrastructure by their clients.
An expanded version of this report appears at WSJ.com.
View more information: https://www.marketwatch.com/story/cal-dive-preparing-chapter-11-bankruptcy-filing-2015-01-23