Diamond Offshore’s stock trading procedures approved on final basis

By Caroline Salls

Pittsburgh, May 27 – Diamond Offshore Drilling, Inc. obtained final 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 order filed Wednesday.

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

Under the 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.

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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