Ability Drilling has decided to file a bankruptcy petition to Nordhordaland Tingrett on Wednesday morning before opening of the stock exchange. The board considers that sale of assets will not be sufficient to cover liabilities. This is a consequence of TTS Sense AS (TTS) failure to meet its obligations to deliver rigs according to contract, or perform contractual guarantee work. Ability Drilling has tried to sell rigs, however TTS has not been able to confirm future delivery of services for new customers. Thus, the rigs has not been saleable.

Ability Drilling's total claim against TTS for inadequate deliveries amounts to NOK 293.4 million. It is the board's and the management's judgment that legal exposure of TTS' breach through a bankruptcy administrator will provide creditors and shareholders with a better chance of regaining values than continued operations. The board and the management will be at the disposal of the bankruptcy administrator.

It has not been possible for Ability Drilling to raise capital, as the rigs are not functioning, and as TTS can not meet delivery deadlines and will not provide service or guarantee work on the rigs according to contracts.

Tags: Ability Drilling