Oil and gas contractor Cal Dive files for bankruptcy

March 4, 2015, 12:08 AM UTC
Offshore jack-up drilling rig
Offshore jack-up drilling rig
Photograph by UIG via Getty Images

(REUTERS) — Offshore oil and gas contractor Cal Dive International said the company and its U.S. subsidiaries filed for voluntary bankruptcy protection.

Cal Dive’s (CDVI) foreign units have not sought bankruptcy protection and will continue to operate outside of any reorganization proceedings, the company said on Tuesday.

Cal Dive has been hurt by the slump in crude prices as oil and gas producers slash their capital spending budgets.

U.S. crude prices have more than halved since June.

“With our current capital structure, we are no longer able to financially withstand the industry downturn,” Chief Executive Quinn Hebert said.

Cal Dive said it would sell non-core assets and reorganize or sell as a going concern its core subsea contracting business.

The Houston-based company said it received a commitment for up to $120 million in debtor-in-possession financing from its current first-lien lenders led by Bank of America (BAC).