Companies forced into Chapter 11 bankruptcy mainly due to problems with their balance sheet, rather than their actual business, can emerge as stronger, more competitive firms. That represents a premium of ~20% above where Ocean Rig stock had been trading prior to the announcement. For those offshore drillers with excessive debt, bankruptcy became one of the only solutions, even though it didn’t necessarily mean the end of the game. The Ocean Rig acquisition is not an anomaly, nor is it unique to oil field service companies. Tropicana proves, therefore, that even though the firm operates a key property on the NJ Boardwalk which made the Game of Monopoly famous, bankruptcy doesn’t always mean the end of the game!

Source: Forbes September 10, 2018 20:48 UTC