THE “DIAMOND OFFSHORE” OIL COMPANY FILED FOR BANKRUPTCY

Due to the falling oil prices, the “Diamond Offshore” energy company from the United States went bankrupt. In the period of 2015-2020, the company, engaged in the offshore drilling, lost $ 1.2 million and accrued a debt of about $ 2 billion.

As a result, the “Diamond Offshore” filed for bankruptcy on April 27. At the moment, the company has 2,500 employees.

We should recall that last week the oil futures became negative. This happened due to the sharp decrease in demand for the cars driving and air travel. With the self-isolation regime and quarantine around the world, the demand for courier home delivery has increased.

The amount of oil, produced in the world, has not changed, but the demand has fallen.

In this regard, the investors are afraid that they will not be able to store the extracted raw materials. As a result, the drilling of new oil has practically been stopped.

Mark Edwards, the CEO of the “Diamond Offshore” company, commented on the situation, saying that the best option now would be to appeal to Chapter 11 of the US Bankruptcy Code. 

He believes that bankruptcy will help achieve a more stable level of debt and improve the business situation for a long period.

For today, the “Diamond Offshore” company is the fifth largest oil company that filed for bankruptcy in the last 30 days. According to the forecasts, this is far from the end - a wave of bankruptcies of oil companies around the world is yet to come.