Louisiana-based Hornbeck Offshore Services, Inc., an operator of oil supply and support vessels, opted for bankruptcy after an acute collapse in energy prices.
The company made efforts starting back in 2014 to preserve cash, making adjustments to its fleet to weather a downturn in energy markets. However, the stress on the oil-field services industry has lasted longer than Hornbeck Offshore Services anticipated and has pressured its ability to repay or refinance its significant debt.
Unsurprisingly, the company's FRISK® score had been indicating maximum distress. A reminder that a FRISK® score of "1" indicates a 10-to-50x greater risk of bankruptcy than the average public company:
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