By Josh Beckerman
Cal Dive International Inc. has filed for Chapter 11 bankruptcy
protection, planning to operate normally while it looks to
reorganize or sell its core subsea contracting business.
The company sends divers under water to install and repair oil
and gas drilling platforms, pipes and other infrastructure.
"Our business has experienced several adverse events that were
beyond our control, and with our current capital structure, we are
no longer able to financially withstand the industry downturn," the
company said.
Cal Dive received a commitment for up to $120 million in
debtor-in-possession financing from its current first-lien lenders
led by Bank of America.
In January, the company decided not to pay a $2.2 million
interest payment. At the time Cal Dive said it was pursuing
financing transactions and asset sales, and warned that a
bankruptcy filing was possible.
The Chapter 11 filing doesn't include the company's foreign
subsidiaries.
Cal Dive, hurt by issues including the suspension of two
projects last year, said "efforts to negotiate additional financing
to fund business activities and pursue identified strategic
alternatives were further impeded when oil prices plummeted."
Cal Dive hasn't had a profitable year since 2009.
Houston-based oil and gas company Endeavour International Corp.
filed for bankruptcy protection in October. Private oil and gas
company WBH Energy LP filed for Chapter 11 in January.
Write to Josh Beckerman at josh.beckerman@wsj.com
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