A Big Bankruptcy News Has Arrived From The Energy Sector!

A Big Bankruptcy News Has Arrived From The Energy Sector!

A major bankruptcy news in the energy sector, which has shrunk due to the decline in oil prices and the decrease in energy demand due to coronavirus, was also received from London. Valaris, the largest in the world with 16 drill ships and 74 offshore wells, applied to the bankruptcy court after the bonds it could not afford. It is stated that the company has $ 7 billion in debt. After the global decline in oil prices and the ensuing coronavirus epidemic, a huge bankruptcy news came in the energy sector. Valaris, the world's largest in the sector, filed for bankruptcy with its 74 offshore wells and 16 drill ships, which are unable to meet the bond payments and seek protection for creditors. In line with Chapter 11 legislation, the company filing the Texas Southern District Bankruptcy Court is said to have a debt of $ 7 billion. In the statement from the company, it was stated that the total assets were $ 13 billion, while half of the bond holders were agreed on restructuring and $ 500 million DIP financing. In line with the restructuring proposal, Valaris will repurchase its shares, exchange the revolving loan facility and unsecured bonds for equity. Valaris CEO Tom Burke emphasized the serious contraction in the energy field, saying that they have to keep up with the contraction and make this move in the name of a stronger company.