Pacific Drilling Joins Offshore Servicers on Brink of Bankruptcy

The tally of offshore oil servicers that can’t keep up with their debts swelled anew, with a disclosure from Pacific Drilling SA that it’s skipping Oct. 1 interest payments and that a bankruptcy filing may follow.

The decision affects $31.4 million of interest due on the company’s 2023 first lien notes and $19.6 million pay-in-kind interest on its 2024 second-lien PIK notes, according to a company filing on Thursday. Pacific Drilling said it invoked a 30-day grace period, which forestalls a formal default, and arranged waivers on its other obligations to head off any claims of a cross-default.

Meanwhile, talks ...