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Why Did This Louisiana-Based Vessel and Oil Rig Company Recently File for Bankruptcy?

An American marine transportation company filed for bankruptcy earlier in March. The Louisiana-based Harvey Gulf International Marine LLC has more than 50 ships in its marine fleet and supplies offshore oil rigs among other oil services. The company filed for Chapter 11 bankruptcy in Houston, Texas, and they reported that they had more than $1 billion in debt. What Happened? In the company’s court papers, it was stated the amount of debt that they were handling, as well as an agreement with lenders to help reduce what they owed. Lenders would then have the equity in the company when it finishes bankruptcy. Other creditors of the company, such as their suppliers, will be fully paid. Many offshore drilling and oil companies have filed for bankruptcy in recent years because of huge drops in oil prices that cut the demand for rigs. Harvey Gulf operates vessels under the Jones Act, which…
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