Tuscany International Files Bankruptcy on Low Rig Use Tuscany International Drilling Inc., (TID) a Canadian oil-field services company that operates in South America, sought U.S. bankruptcy court protection from creditors, citing heavy competition and slow payments from customers.
The Calgary-based company listed assets and debt of as much as $500 million each in Chapter 11 papers filed today in Wilmington, Delaware. A Houston-based affiliated holding company also filed for bankruptcy.
“Beginning in late 2012, the Tuscany entities began to experience significant revenue, cash flow and liquidity challenges, due in large part to low rig utilization” and overdue customer payments, Deryck Helkaa, the company’s chief restructuring officer, said in court papers.
Tuscany, with about 1,200 employees, owns 26 drilling rigs in Colombia, Brazil and Ecuador, he said.
Helkaa said the company will seek a judge’s permission to borrow $35 million loan to carry it through reorganization.
The case is In re Tuscany International Holdings (U.S.A.) Ltd, 14-10193, U.S. Bankruptcy Court, District of Delaware (Wilmington).