Valaris, the major operator of offshore oil rigs, has filed for bankruptcy due to challenging market conditions in the oil and gas industry, due to the coronacrisis. The company is no longer able to meet its debt obligations.
Valaris, based in London, is one of the largest offshore drilling companies in the world in terms of its fleet, but is in debt of some USD 7 billion. The application was filed in the U.S. State of Texas. The company is now going to try to restructure the debts, but warned that there will probably be little or nothing left for the shareholders.
Other offshore drilling companies have also gone bankrupt due to the malaise in the oil industry caused by the coronacrisis which led to significantly lower oil prices. As a result, companies of this type will receive far fewer orders for drilling at sea.