Azernews.Az

LONDON – KCA Deutag, the leading international drilling and engineering contractor, on Thursday announced the launch of a review of strategic alternatives to strengthen its capital structure and position the company for long-term growth.

KCA Deutag recently executed an agreement with its senior lenders to defer covenant tests from November 14, 2010 to March 31, 2011. This agreement provides the stability and funding to allow KCA Deutag to implement its business plan and pursue discussions with its existing stakeholders and new financial and strategic investors to ensure a solution to its capital structure on a long-term basis.

In order to address its capital structure on a permanent basis and position the company for growth, the Board of Directors of Turbo Alpha, which owns KCA Deutag, has initiated a review of strategic alternatives. Such review will involve the possibility of a sale of the business or the provision of new long-term capital in connection with a refinancing or renegotiation of the existing debt.

The Board of Directors of Turbo Alpha has retained Morgan Stanley & Co. International plc and Lexicon Partners Limited to assist it in the strategic review.

KCA Deutag is one of the world's largest international land drilling and platform drilling contractors. The company also operates a fleet of mobile offshore drilling units. KCA Deutag employs over 8,000 people and operates in over 20 countries worldwide.

KCA Deutag is also one of the world’s leading rig design engineering specialists, working for oil and gas companies and major contractors via its engineering division RDS.