Oslo-listed Golden Close Maritime Corp is in talks with bondholders after failing to pay interest in April.
The drillship company, which owns the 80,000-dwt Deepsea Metro I (built 2011), blamed the layup of the unit since January, when it ended its contract with Vietgazprom in Vietnam.
A new short-term charter worth $11m to $13m, with options, with Petronas is expected to start in late June or early July.
The joint venture is controlled 60% by Metro Exploration and 40% by Odfjell, which manages the unit.
Golden Close said: "There are contract opportunities for Deepsea Metro I in the current and near term market, but competition is fierce and reduced day rates alone do not clear the market."
It is seeking new charters to keep the unit employed, but has breached its asset coverage ratio and the minimum free liquidity financial covenants under its bond agreement.
The owner did not pay the quarterly interest payment due in April 2016.
It said investors agree that "keeping the unit warm and occupied on short to medium-term contracts in today’s challenging drilling market is the best way of maintaining the value of the drillship, even if prevailing day rates does not allow the issuer to properly service its debt obligations."
Talks have begun to agree on a longer-term plan, including extending the drillship management agreement and amending the bond agreement, or at least formally waiving the financial covenants.
The board believes there is a "realistic chance" of a new deal.
The first quarter net loss was $21.3m, compared to £30.66m a year ago. Another drillship was auctioned off in March.
