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bankruptcy code will protect the companys restructuring deal from distressed debt investors and enable it to pursue its debt-for-equity swap with the lenders. Ocean Rig currently carries a Zacks Rank #2 (Buy). You can see the complete list of todays Zacks #1 Rank (Strong Buy) stocks here. Ocean Rig has reached a financial restructuring agreement with a group of lenders which would convert $3.7 billion of debt of the company to new equity, along with $288 million in cash payment and $450 million in new secured debt. The company stated that existing shareholders will be diluted to an insignificant amount of post-restructuring equity of the company. The company had been contemplating restructuring under bankruptcy since 2016 owing to the oil and gas industrys downturn. Due to the decline in oil prices since 2014, many energy firms have slashed rig hires which in turn have left vessels unutilized. Notably, even though more than half of the drilling units of Ocean Rig are inactive, the company needs to repay its debts. Ltd. PTR announced 2016 earnings of RMB 7,900 million or RMB 0.04 per diluted share the lowest on record compared with RMB 35,653 million or RMB 0.19 per diluted share a year earlier. The negative comparisons can be primarily attributable to the multi-year collapse in oil prices, which pummeled PetroChina's biggest unit exploration and production to a meagre profit. Despite the poor showing, PetroChina has decided to follow its state-owned rivals in boosting 2017 capital expenditure.
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