Paragon Offshore said it will filed for bankruptcy after it became the first US energy-related firm to seek court protection from creditors.
The Houston-based company previously said it would not make a $15.4million bond interest payment due last month.
The move had led to a 30-day grace period before default.
Paragon had hired Lazard Ltd and Weil, Gotshal and manges LLP to explore strategic alternative related to its capital structure.