Paragon Offshore to file for bankruptcy

Fri Feb 12, 2016 9:32am EST
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Feb 12 (Reuters) - Paragon Offshore Plc said it will file for Chapter 11 bankruptcy on or before Feb. 14, becoming the first U.S. energy-related company to seek court protection from creditors this year amid a plunge in oil prices.

The Houston-based driller, which has rigs around the world, has been struggling with a heavy debt load.

Paragon decided not to make a $15.4 million bond interest payment due Jan. 15, triggering a 30-day grace period before default.

Paragon had $732 million in cash at Sept. 30, according to public filings. (Reporting by Amrutha Gayathri in Bengaluru and Jessica DiNapoli in New York)