Vantage Says Reaches Deal With Lenders, Unit To File For Bankruptcy

Offshore driller Vantage Drilling Co said it reached a support agreement with lenders and noteholders holding more than $1.6 billion in debt to reduce interest expense but one of its units will file for U.S. bankruptcy on Dec. 3. The agreement and bankruptcy will help its subsidiary Offshore Group Investment Ltd to ride out a downturn in the energy sector. The company said the deal with lenders calls for deleveraging the unit, which holds the contracts for some of its rigs. "The agreement we've reached with our lenders and note holders will eliminate more than $152 million of annual cash interest expense and position us with a strong, deleveraged balance sheet expected to have more than $242 million of cash on hand," said Paul Bragg, chief executive officer of Vantage. Separate proceedings in connection with winding down Vantage will be commenced in the Cayman Islands, where the company is based. Read more.