Norway-listed Dolphin Drilling filed for bankruptcy on Wednesday as a new buyer stepped in to form a new operating company to keep the fleet trading.
The company, which has six rigs and drillships, completed a restructuring deal, allowing the old Dolphin Drilling to be wound down.
The new deal will enable it to move forward and deploy its rigs into the attractive UK and Norwegian markets, the company said.
Its operating subsidiaries have now been transferred to a new holding company, Dolphin Drilling Holdings, incorporated in Jersey that will be net-debt free, with a strong balance sheet and increased financial flexibility.
"Following the successful completion of this financial restructuring a new world-class management team, which collectively has over 100 years of experience in offshore drilling, will drive the company forward," it said.
"Dolphin Drilling can now focus on putting its ready-to-operate fleet to work."
The new majority shareholder is investment fund Strategic Value Partners,
Bjornar Iversen, incoming CEO of Dolphin Drilling, said: “We are delighted that Dolphin Drilling has now emerged in a strong position for the future.
"In addition to the company’s focused, nimble fleet and high-quality team, we now have the firm financial footing we need to win new business. I look forward to working with the team to ensure that the company fulfills its full potential.”
Jorgen Peter Rasmussen, incoming chairman of Dolphin Drilling, added: “This financial restructuring is a vital milestone in the resurgence of Dolphin Drilling.
Solid platform
"The solid platform it provides, and the backing from our new majority shareholder, means that the incoming leadership team, alongside all of Dolphin Drilling’s highly experienced staff, can now focus on delivering top class services and value to our customers.”
The company had debt of just over $1bn at the end of 2018 and a net loss for the year of almost $300m, according to its annual report.
Dolphin had earlier said in a statement to the Oslo Stock Exchange that it would file for bankruptcy on Wednesday and added: "Regretfully, the creditors of Dolphin Drilling have not been able to agree on the terms for a consensual restructuring, and the secured creditors have demanded payment of all amounts outstanding under the secured debt of the company."
In January, Fred Olsen holding company Bonheur deconsolidated Dolphin and said it would no longer be a majority shareholder.
The move came as a result of a difference in opinion with banks over how to refinance the drilling operation.
The name of the company was changed from Fred Olsen Energy in December.
Last August, Bonheur, with a stake of 51.9%, said it was evaluating whether it would take part in the potential refinancing.
Debt was more than $840m as of 30 June 2018.
It also had a NOK 1.025bn ($125m) bond that was due in February.
