Paragon Offshore to File for Bankruptcy
Paragon Offshore Plc said it will file for Chapter 11 bankruptcy on or before Feb. 14, becoming the first U.S. energy-related company to seek court protection from creditors this year amid a plunge in oil prices.
The Houston-based driller, which has rigs around the world, has been struggling with a heavy debt load.
Paragon decided not to make a $15.4 million bond interest payment due Jan. 15, triggering a 30-day grace period before default.
Paragon had $732 million in cash at Sept. 30, according to public filings.
(Reporting by Amrutha Gayathri in Bengaluru and Jessica DiNapoli in New York)