Hercules Offshore, Inc. Files For Bankruptcy in Delaware

On August 13, 2015 (the “Petition Date”), Houston-based Hercules Offshore, Inc. and certain of its subsidiaries and/or affiliates (collectively, “Hercules”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.  According to the declaration of Troy L. Carson, the Senior Vice President and Chief Financial Officer of Hercules (the “Carson Declaration”), Hercules enters bankruptcy with a “prepackaged” plan to, among other things, deleverage its balance sheet by converting $1.2 billion in principal amount of six outstanding series of senior notes (the “Senior Notes”) into 96.9% of new equity in the reorganized Hercules). Hercules provides shallow-water drilling and marine services to the global oil and natural gas exploration and production industry.  Hercules also operates a fleet of 27 self-elevating, mobile offshore drilling units, or “jackup rigs,” and 21 self-elevating, self-propelled “liftboat” vessels.  As of the Petition Date, Hercules has estimated assets with a book value of approximately $546 million net of intercompany claims against and historic investments in, the Non-Debtor Subsidiaries.  Hercules has total liabilities of approximately $1.31 billion, the bulk of which ($1.2 billion) is comprised of unsecured debt obligations under the Senior Notes.Hercules is also seeking to have their bankruptcy cases jointly administered, for procedural purposes only, under the lead bankruptcy case of In re Hercules Offshore, Inc. [Case No. 15-11685].  The bankruptcy cases have been assigned to Bankruptcy Judge Kevin Carey.A copy of the Carson Declaration can be accessed here: Download Carson Declaration. For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney.  For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring. By Steve Levitt, Joseph Bain and Mitchell Ayer