Offshore services player Cal Dive International, along with its U.S units, have filed for chapter 11 bankruptcy as low oil prices strain the company’s coffers.
The Houston-based company will sell off non-core assets and is planning to either reorganize or sell its main subsea contracting business.
“Our business has experienced several adverse events that were beyond our control, and with our current capital structure, we are no longer able to financially withstand the industry downturn,” Cal Dive CEO Quinn Hébert said.
Cal Dive was founded in 1975. It provides support for infrastructure installation, production well mediation, and decomissioning and salvaging.
The company currently has operations in the Gulf of Mexico, Latin America, Southeast Asia, Australia, the Middle East, India, the Mediterranean and West Africa.
Cal Dive’s bottom line took a hit last year after two large projects were suspended and other contract work was delayed due to bad weather.
The company’s overseas business will continue operating outside of the bankruptcy proceedings, it said.
Cal Dive’s U.S. business will continue operations under Delaware’s federal bankruptcy court, with $120 million in debtor-in-possession credit from Bank of America and other lenders.
The company said it will still complete work on ongoing construction projects in Mexico and other locations.
In January Cal Dive failed to make a $2.2 million interest payment on 5 percent bonds set to mature in 2017 and utilized a 30 day grace period to keep talks open with lenders.
The company employed 1,550 full time workers as of the end of 2013.
“By availing ourselves of the chapter 11 process, we can achieve an orderly restructuring for our business that has consistently produced competitive results under a more favorable capital structure,” Hébert said.