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Offshore oil and gas driller Noble Corporation has announced it has filed for chapter 11 bankruptcy protection to restructure debt, following a historic crash in crude oil prices.
The latest move comes as part of the company’s plans to cut more than $3.4bn of its debt after a crash in crude prices made deepsea oil wells expensive.
Noble Corporation expects a comprehensive reorganisation plan to be confirmed by the end of this year, allowing it to emerge from chapter 11 before this year-end.
Noble Corporation president and CEO Robert Eifler said: “Along with many other businesses in our industry, Noble has been affected by the severe downturn in commodity prices, which has been compounded by the Covid-19 pandemic.
“After many months exploring our strategic options, we concluded that a substantial deleveraging transaction implemented through a Chapter 11 filing, supported by our largest creditors, provides the best outcome for Noble and our stakeholders.
“Our improved balance sheet and liquidity position will enable us to further invest in our assets, customer relationships and our people.
Noble adds to over 200 oilpatch bankruptcies since 2015, Bloomberg reported.
According to economists, a lack of aid from the government may push companies into bankruptcy and increase unemployment rates.
In June this year, Chesapeake Energy filed for bankruptcy in its home state of Texas, US. The company was once the second-largest US gas producer but has taken a large hit due to Covid-19.