Hercules Offshore announces bankruptcy for the second time in nine months

Hercules Offshore (HERO) has filed for bankruptcy for the second time in nine months. The company filed for Chapter 11 bankruptcy in August 2015 as lowering oil and gas prices caused havoc within the industry. In November last year, the company managed to get rid of almost $1.2 billion of its outstanding debt. However, another downturn in the oil industry emerged as crude plummeted in February 2016. Upon announcement of the news, shares for the company tumbled by 39%.

The company said that it intends filing motions with the courts in order to continue with paying back its debtors and not have to implement cuts to its employee's wages. It is expected that as the oil price continues to remain at a low that more companies will start to file for bankruptcy. Meanwhile Hercules is set to sell some of its assests. The company has reached a deal of $196 million to sell a rig operating in harsh territories to company Maersk Highlander.