Hercules Offshore laid off 60 workers from the head office in Houston, as part from the business restructuring and optimization. The company is already in bankruptcy, after filling Chapter 11 in a Delaware court in beginning of the month. Despite of the restructuring and bankruptcy procedure, the company plans to operate its rigs and vessels through the bankruptcy process and to maintain its commitments to staff on pay and benefits. The laid off staff is mostly from the head office in Houston and external contractors of the offshore rigs. The affected employees will be compensated according to the social problem of the company.
This is second time in less than an year, when Hercules Offshore fills for bankruptcy protection in the court. The company had emerged from its previous Chapter 11 only in November 2015, but again felt in troubles in the second quarter of 2016. The company is planning to sell off its assets and shut down just months after a balance sheet reshaping that was supposed to save the business. Hercules Offshore failed to restructure deals with creditors and could not find outright buyers.
This latest filing has been challenged by a major shareholder, Centerbridge Partners, which claims it is unnecessary.
Hercules Offshore is offshore operator with fleet of 27 jackup rigs and 17 liftboats. The company offers a range of services to oil and gas producers during drilling, well service, platform inspection, maintenance, and decommissioning operations in several key shallow water provinces around the world.