Services firm Hercules Offshore said on Thursday that it expects to file for Chapter 11 bankruptcy in about three weeks.
According to Reuters, the company plans to file for bankruptcy protection in the next three weeks and emerge from restructuring sometime in the fourth quarter.
In June, Houston-based Hercules announced its bankruptcy plans after reaching an agreement with its creditors that would eliminate $1.2 billion of debt.
“The limited visibility and challenging market conditions that we expect to persist for some time drove our decision to restructure our capital base. As previously disclosed, we have reached an agreement with the majority of our noteholders, and anticipate obtaining final approval of our restructuring plan in late October,” Hercules CEO John T. Rynd said in the company’s second quarter results.
When the creditor agreement was announced, Rynd said Hercules has sufficient liquidity to fund its operations through the restructuring period and added that the company will continue operating as usual during the process.
No layoffs have been announced.
The company said its plan is supported by over two thirds of its outstanding debt holders.
Hercules told Reuters that the prepackaged process it has chosen will cut down the amount of time it spends in bankruptcy.
The company hopes to emerge from the bankruptcy process in the fourth quarter of this year.
Hercules reported a net loss of $88.3 million, or $0.55 per diluted share, on revenue of $79.2 million for the second quarter, compared to net income of $6.6 million, or $0.04 per diluted share, on revenue of $243.0 million for the second quarter 2014.
The company’s balance sheet lists $1.35 million in current liability and $266 million in current assets, Reuters said.
“We also continue to aggressively reduce costs without compromising the safety of our employees or the quality of our services. By controlling costs and establishing a stronger balance sheet, we will be better positioned to weather this protracted downturn and possibly capitalize on opportunities that may arise in such industry conditions,” Rynd added.