Hercules Offshore cuts 60 jobs in Houston

Hercules Offshore cuts 60 jobs in Houston

Hercules Offshore, a U.S. based driller which recently announced decision to file for bankruptcy for the second time in less than a year, has laid off workers in Texas.

The shallow water drilling company on Friday filed a notice to Texas Workforce Commission, according to which, 60 workers  in Houston were laid off on the same day, June 10.

Offshore Energy Today has reached out to Hercules Offshore, seeking more info on the announced layoffs. We will update the article if we get a response.

Assets up for sale

The offshore driller has not managed to stay afloat, even after numerous actions to mitigate the effects of the decline in activity levels, including cold stacking rigs, cutting capex and reducing workforce.

To remind, the company had in February established a comittee to explore the company’s options, including a merger or a sale of the company.

On June 6, 2016, the company filed for bankruptcy in a Delaware court, as per its May agreement with creditors, which also called for the company to place all of its unsold assets into a wind-down vehicle to “ensure their continued, safe operation until they can be sold.”

Hercules Offshore explained that the Chapter 11 process helps to preserve business continuity for these assets, which in turn, helps to maximize the value of future sales.

The company’s international subsidiaries will not be included as part of the Chapter 11 cases, but will be part of the sale process, Hercules Offshore said.

Also, Hercules Offshore has said it plans to operate its rigs and vessels as usual throughout the sale process and to meet its commitments to employees, customers and suppliers worldwide, assuring it has the necessary cash on hand to fund operations throughout the Chapter 11.

When it comes to employees, Hercules on June 6, said that, looking ahead, intended to operate all of its rigs and liftboats under contract as usual throughout the sale process.

“Employees associated with these rigs and vessels should see little change. The company will continue to assess its needs for onshore employees to ensure it is operating its business as efficiently as possible,” the company then said.

Offshore Energy Today Staff

 

 

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