PACD - Pacific Drilling skips interest payments due today

Pacific Drilling ([[PACD]] -5.1%) looks like the next oil and gas name on the verge of bankruptcy after electing not to make the $31.4M interest payment due today for its 8.375% first lien notes due 2023 and the $19.6M PIK interest payment also due today, according to an 8-K filing.The company has a 30-day grace period expiring on Oct. 31 before the non-payment constitutes an "event of default."Pacific Drilling had $218M of cash and cash equivalents and $6M of restricted cash as of Sept. 30.Pacific Drilling warned in August that it could file for Chapter 11 bankruptcy, saying "we do not believe our current capital structure will be sustainable" because of "market conditions and our outlook for contracting opportunities through 2020 and 2021."

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Pacific Drilling skips interest payments due today