HOUSTON -- Chiles Offshore Corp. said it is in technical default with two of its secured lenders, Norske Band and Christiania Bank og Kreditkasse, both of Norway.
The Houston-based borrower said it has not actually defaulted on payments to the secured creditors.
Chiles Offshore recently received a bank-requested appraisal of its oil-rig fleet, which showed that the fair market value was less than necessary to remain in compliance with asset-to-debt ratios set by the loan agreements. Chiles has requested waivers of the technical defaults.
