Cal Dive files for Chapter 11 protection

HOUSTON, March 3, 2015 /PRNewswire/ – Cal Dive International, Inc. (CDVI) (“Cal Dive”, or the “Company”) announced today that it and its U.S. subsidiaries have filed simultaneous voluntary petitions in the United States Bankruptcy Court for the District of Delaware seeking relief under the provisions of Chapter 11 of the U.S. Bankruptcy Code. The Company’s foreign subsidiaries have not sought bankruptcy protection and will continue to operate outside of any reorganization proceedings. The Company and its U.S. subsidiaries will continue to operate their businesses as debtors-in-possession under the jurisdiction of the Bankruptcy Court.

Poor guys. What do you think they mean by saying, “Through the Chapter 11 process, the Company will sell non-core assets and intends to reorganize or sell as a going concern its core subsea contracting business”? Think they will sell off some of the pipelay boats and Uncle John?

personally I believe they are doomed because the bulk of their equipment is little more than scrap in competition with vessels less than 10 years old. CalDive might have made it if they had invested in new equipment after they made big bucks in the mid 2000’s after Katrina, Rita, Gustav, Ike, etc… Companies always must invest in newer, better, more capable, more reliable and more efficient equipment for the customer. They are the drivers and just like a rental car company no one wants to pay to rent a junker. If you are renting, you want the rent a nice new car to drive.