VALARIS SELLS SIX DRILLING UNITS – FILING FOR BANKRUPTCY IS IMMINENT

The Houston based offshore drilling contractor Valaris advised that five drilling units have been recently sold during the month of July. A 6th unit, the jackup JU-70 was sold in June.
The ultra-depwater semi-submersibles Valaris 8500 and 8501 have been sold for conversion for $3,500,000 each to an undisclosed buyer.
The ultra-deepwater drillships Valaris DS-3 and Valaris DS-5 have been sold for recycling to the Turkish ship recycling company Rota Shipping for $3,500,000.
The jackup JU-70 was also sold for recycling to Rota Shipping
According to Bloomberg, “Valaris could become the latest offshore service company to file for bankruptcy as tough oil and gas markets continue to weigh on firms globally.”
Valaris, the largest offshore driller by fleet size, may seek Chapter 11 imminently after skipping debt payments and getting a waiver from some of its credit facility lenders, according to its second-quarter earnings statement. “There will likely be little or no recovery to existing shareholders” Valaris said.
(Source: Valaris/Bloomberg)