Hercules looks to sell Gulf of Mexico fleet, gets $18 million lead bid

By Caroline Salls

Pittsburgh, Nov. 30 – Hercules Offshore, Inc. requested court approval of the bid procedures for the proposed $18 million sale of its Gulf of Mexico fleet of jack-up drilling rigs, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Enterprise Offshore Drilling LLC is the stalking horse bidder.

If Enterprise is not ultimately the high bidder for the fleet, it will receive a $630,000 break-up fee and reimbursement of up to $300,000 of its sale-related expenses.

Competing bids are due by 5 p.m. ET on Jan. 9 and must at least equal the amount of the stalking horse bid, plus the break-up fee and expense reimbursement, as well as a $500,000 initial overbid amount.

An auction will be held on Jan. 12, if necessary. Bids at auction must be made in minimum increments of $250,000.

Hercules, a Houston-based provider of offshore drilling equipment and services, filed bankruptcy on June 6. The Chapter 11 case number is 16-11385.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.