Valaris, the world's largest offshore drilling contractor by fleet size, said Tuesday that the New York Stock Exchange had decided to suspend its shares and delist them.
The offshore drilling company has been hit hard by the blended effects of the global COVID-19 pandemic, a drop in oil prices, and a decline in the demand for its services and falling rig rates.
The company, created via Ensco-Rowan mergers in 2019, last week filed for bankruptcy in a move to restructure its debt load and reduce debt by more than $6.5 billion.
On the same day, as Valaris shared on Tuesday, the NYSE informed it of the decision to suspend and delist its shares.
"This suspension and delisting by the NYSE is in accordance with Section 802.01D of the NYSE Listed Company Manual due to the Company's voluntary filing for reorganization under Chapter 11 of the Bankruptcy Code on August 19, 2020," Valaris said Tuesday.
Valaris had previously said that its restructuring efforts including via Chapter 11 "may result in cancellation of existing equity interests and little or no recovery to existing shareholders."
Apart from Valaris, other offshore drilling companies that have filed for Chapter 11 Bankruptcy during this downturn are Noble Corporation (earlier in August, and Diamond Offshore (back in April).
Another offshore driller, Seadrill, which delisted from the NYSE in June, is looking at debt restructuring options. The company on Tuesday said that "potential outcomes in terms of debt restructuring are likely to involve significant equitization of debt and consequently lead to minimal or no recovery for current shareholders."