Greek platform operator Ocean Rig has filed for Chapter 15 bankruptcy protection in a US court due to the prolonged downturn in the industry.
Shares of the company plunged 36.4 percent to 46 cents in early trading on Tuesday.
The company, which had $3.25 billion in debt as of December 31, filed for bankruptcy in the United States Bankruptcy Court for Southern District of New York.
Under American bankruptcy laws, Chapter 15 grants a foreign company protection from creditors looking to seize its assets in the country.
The company said it has entered into an agreement with creditors representing over 72% of Ocean RIG’s outstanding consolidated indebtedness for a financial restructuring.
Ocean Rig’s chief executive, George Economou, said last year that the company would consider alternatives, including a possible reorganization under US bankruptcy laws.
Last year, Hercules Offshore Inc filed for bankruptcy protection, just six months after emerging from its first bankruptcy.