HOUSTON, TX – Independence Contract Drilling (NYSE:ICD) Inc. (OTC Pink:ICDIQ), a Delaware-incorporated drilling company, has entered into a debtor-in-possession (DIP) financing agreement, securing a $32.5 million loan to support operations during its Chapter 11 bankruptcy proceedings, according to a recent SEC filing.
The company, which operates in the oil and gas well drilling sector, filed for Chapter 11 on December 2, 2024. The Bankruptcy Court for the Southern District of Texas approved the financing on December 4, 2024, allowing the company to continue business operations under court jurisdiction.
The DIP facility, backed by prepetition holders of the company's Convertible Notes, offers a senior secured superpriority term loan with an interest rate of one-month SOFR plus 4.00%. The funds will be used for working capital, corporate purposes, bankruptcy-related costs, and to pay down borrowings under the Revolving ABL Credit Agreement.
Trading of Independence Contract Drilling's common stock transitioned from the OTCQX Best Market to the OTC Pink Market on December 4, 2024, following the delisting due to the bankruptcy filing. The company cautioned that there is no assurance of continued trading on this market or the efficiency of the trading market.
The company's forward-looking statements indicate plans to operate normally during the restructuring process and the potential effects of the Chapter 11 proceedings on business operations and financial conditions.
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