John Bromels (Borr Drilling): Offshore rig operator Borr Drilling just released a Q1 financial update and a fleet status report on May 20, and neither one was pretty.
Of the 30 drillships in the company's fleet at the end of 2019, four have been sold. Another three received early termination notices in May, joining 11 other ships in "stacked" (idle) status. That means that of the company's now-26-ship active fleet, more than half (14) are neither generating revenue nor under contract to do so in the future.
With $1.8 billion in debt on its books and just $13.2 million in cash, the company is facing a liquidity crisis. In its update, Borr announced it was involved in a "tender processes which might lead to sale of certain modern assets," was negotiating "postponement of certain yard commitments, adjustment in covenants and reduced [amortization] as well as deferring cash interest payments" with creditors and shipyards, and has "received certain waivers from its lenders, including ... interest payment deferrals." On top of that, it reported a Q1 net loss of $87 million.
Basically, Borr is scrambling to stay afloat (no pun intended) by any means it can, whether that's selling its rigs or renegotiating the terms of its credit. But if the sales don't go through or lenders refuse to extend more generous terms, Borr may have no choice but to declare bankruptcy.
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