Ann: Victorian Drilling Update, page-18

Looks like they using bankruptancy laws to restructure their debt and wil continue their operations> They are using Chapter 11 to offer them protection while they look to restructure their balance sheet. They are taking advantage of the slow down, and strenghtening their balance sheet.

Shares of Diamond Offshore Drilling Inc. DO, +13.06% plummeted 61% toward a record low in premarket trading Monday, after the oil driller said it has filed for bankruptcy in the Southern District of Texas. The company said it plans to use the bankruptcy proceedings to restructure and strengthen its balance sheet, and achieve a "more sustainable" debt profile. Diamond said it had sufficient capital to fund operations during the reorganization and does not require additional post-petition financing. "After a careful and diligent review of our financial alternatives, the Board of Directors and management, along with our advisors, concluded that the best path forward for Diamond and its stakeholders is to seek chapter 11 protection," said Chief Executive Marc Edwards. "Through this process, we intend to restructure our balance sheet to achieve a more sustainable debt level to reposition the business for long-term success." The stock had plunged 80.4% over the past three months through Friday, while crude oil futures CL00, -16.65% had dropped 73.2% and the S&P 500 SPX, +1.39% had lost 12.5%.