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.
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 allows the use of U.S. ships to transport items between U.S. coasts. However, there have been exemptions to the Jones Act that have allowed foreign-flagged ships (which are cheaper) to support the oil and gas industry. The Obama administration has attempted to abolish these exemptions, and companies like Harvey Gulf have urged President Trump to implement the proposal of “keeping America, American.”
This bankruptcy news is further proof of the latest signs of struggles in the offshore energy business. If you would like to keep up with oil rig national news, visit our website or contact our oil rig accident attorneys today.