Diamond Offshore stock trading procedures OK’d; delisting launched

By Caroline Salls

Pittsburgh, April 28 – Diamond Offshore Drilling, Inc. obtained interim approval from the U.S. Bankruptcy Court for the Southern District of Texas designed to assist Diamond in preserving some of its tax attributes by establishing notification and hearing procedures related to proposed transfers of its common stock, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The final hearing is scheduled for May 27.

The interim order also sets procedures for the taking of worthless stock deductions.

Under the interim order, any person or entity owning or seeking to acquire ownership of 4.5% or more of Diamond’s common stock must file a declaration of status as a substantial shareholder and declaration of intent to accumulate common stock.

Any substantial shareholder seeking to acquire or dispose of Diamond’s common stock must file a notice regarding the proposed transfer, to which the company may object. If the transaction is completed without company or court approval, it will be deemed null and void.

In addition, Diamond said it received notification Monday from the staff of NYSE Regulation, Inc. that the staff will begin proceedings to delist Diamond’s shares of common stock because of its Chapter 11 bankruptcy filing.

Diamond said it does expect to exercise its right to appeal the delisting determination, and its common stock is expected to be quoted on the OTC Pink markets.

The offshore oil and gas drilling contractor is based in Houston. The company filed bankruptcy on April 26 under Chapter 11 case number 20-32307.

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