Following its Chapter 15 filing amid a prolonged downturn in the offshore drilling market, deepwater drilling contractor Ocean Rig is now facing delisting from Nasdaq stock exchange.
The company has been notified by Nasdaq that, because the company filed for protection under Chapter 15 of the U.S. Bankruptcy Code on March 27, 2017, Nasdaq intends to delist the company’s common stock from the Nasdaq Stock Market by filing a delisting application with the U.S. Securities and Exchange Commission.
Further, the notice states that unless the company requests an appeal of this determination, trading of the company’s common stock will be suspended at the opening of business on April 6, 2017.
The company said it has requested a hearing before the Nasdaq hearings panel in order to appeal the delisting determination, which is expected to stay the suspension of the company’s listing pending issuance of the panel’s decision following the hearing.
To remind, the driller earlier this week entered into a restructuring support agreement with creditors representing over 72% of Ocean Rig’s outstanding consolidated indebtedness for a financial restructuring.
The driller’s rig fleet value took a massive hit in the last twelve months, dropping some 40 percent and putting significant strain on Ocean Rig management, according to a report from VesselsValue.