HOUSTON – (Realty News Report) – Houston-based Diamond Offshore Drilling has filed for Chapter 11 bankruptcy protection, the company announced Monday.
The company’s headquarters are located in a multi-tenant 8-story, 182,000-SF office building in the Energy Corridor at 15415 Katy Freeway, west of Highway 6.
Diamond Offshore has over 2,000 employees, however some layoffs have been occurring in recent weeks.
Marc Edwards, President and Chief Executive Officer, said “After a careful and diligent review of our financial alternatives, the Board of Directors and management, along with our advisors, concluded that the best path forward for Diamond and its stakeholders is to seek chapter 11 protection. Through this process, we intend to restructure our balance sheet to achieve a more sustainable debt level to reposition the business for long-term success.”
Oil prices have been at record lows in April as demand has shriveled during the Coronavirus pandemic. Last Monday, West Texas Intermediate crude fell to a negative $37 a barrel – an unprecedented low that sent shock waves through the oil industry.
Oil was trading around $12 a barrel Monday morning April 27.
Shares of Diamond Offshore were priced at 94 cents a share Monday.