The best path forward for Diamond Offshore and its stakeholders is to seek Chapter 11 protection, according to the company's president and CEO.

The best path forward for Diamond Offshore and its stakeholders is to seek Chapter 11 protection.

That’s according to the company’s president and CEO, Marc Edwards, who revealed Monday that conclusion was reached by the company’s board of directors, management and advisors after a “careful and diligent” review of the firm’s financial alternatives.

In a statement posted on Diamond Offshore’s website yesterday, Edwards outlined that, through the Chapter 11, the business intends to restructure its balance sheet to achieve a more “sustainable debt level” to reposition it for “long-term success”.

Edwards added that the company remains focused on “maintaining its high standards as it relates to safety and operational excellence” during the chapter 11 process and said the company’s clients and vendors should expect “business as usual” across its organization.

Diamond Offshore announced Monday that it, and select subsidiaries, had filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas.

In the announcement, the company said it has sufficient capital to fund its global operations in the ordinary course and to make continued investments in safety and reliability during the reorganization proceedings.

In addition to Diamond Offshore, the following company subsidiaries are included in the chapter 11 filings:

Diamond Offshore Finance Company

Diamond Offshore Development Company

Diamond Offshore Services Company

Diamond Offshore Management Company

Diamond Offshore Company

Arethusa Off-Shore Company

Diamond Offshore General Company

Diamond Offshore (Brazil) L.L.C.

Diamond Offshore Holding, L.L.C.

Diamond Foreign Asset Company

Diamond Offshore International Limited

Diamond Rig Investments Limited

Diamond Offshore Limited

Diamond Offshore Drilling (UK) Limited

Following Diamond Offshore’s commencement of voluntary Chapter 11 proceedings, the company received a NYSE delisting notice.

Diamond Offshore describes itself as a leader in offshore drilling. Headquartered in Houston, Texas, the business provides contract drilling services to the energy industry around the globe with a total fleet of 15 offshore drilling rigs.

To contact the author, email andreas.exarheas@rigzone.com