Major Energy Corridor Company Files Chapter 11 Bankruptcy
The Diamond Offshore building in Houston’s Energy Corridor.
HOUSTON – (Realty News Report) – Diamond Offshore Drilling, headquartered in Houston, announced Monday that it has filed for Chapter 11 bankruptcy protection.
The company’s corporate offices are located in a multi-tenant, eight-story office building totaling 182,000 square feet at 15415 Katy Freeway in the Energy Corridor, just west of Highway 6.
Diamond Offshore employs more than 2,000 people, although the company has implemented some layoffs in recent weeks as operations have been affected.
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 and reposition the business for long-term success.”
Global oil prices plunged in April as demand collapsed amid the coronavirus pandemic. On Monday of last week, West Texas Intermediate crude briefly fell to a historic negative price of minus $37 per barrel, a shock to the energy sector.
By Monday morning, April 27, oil was trading near $12 per barrel, reflecting continued market turmoil and oversupply concerns.
Shares of Diamond Offshore were trading at approximately $0.94 per share on Monday.
