Houston-based Parker Drilling said Wednesday it’s filing for bankruptcy and losing its listing on the New York Stock Exchange.
The financially hobbled onshore drilling contractor has struggled mightily since the last oil bust that began in late 2014 and Parker has barely stayed afloat of late.
So Parker Drilling is opting for a prearranged Chapter 11 bankruptcy filing with a reorganization plan supported by some of Parker’s top lenders and shareholders that’s intended to cut its debt load by two-thirds and maintain sufficient operations in the interim.
The goal is for Parker to fix its finances in bankruptcy proceedings and emerge in better fiscal shape. There’s no consideration being given to sell the company for parts or do away with Parker entirely, according to Chairman and Chief Executive Gary Rich.
“Our operational results have continued to improve this year, and we anticipate new opportunities for profitable growth across our drilling and rental tools businesses,” Rich said. “The steps we are announcing today will ensure that we have the appropriate capital structure to take advantage of these opportunities to strategically grow our assets, our global footprint, and our suite of products and services.”
He said the bankruptcy process should be completed by the end of March.
Parker has about 2,000 worldwide workers, although fewer than 200 are defined as corporate employees.
Parker Drilling has fallen outside of NYSE compliance and will instead trade on the OTC Pink market. Parker has for some time failed to comply with the NYSE listed requirement of a market capitalization value of at least $15 million.