The restructuring agreement, which will cut more than $6.5 billion of debt, will convert Valaris's existing credit facility and unsecured notes to equity, according to the statement. Existing note holders agreed to backstop $500 million of new notes. London-based Valaris, which was created in 2019 out of the combination of Ensco Plc and Rowan Companies Plc., joins rivals Noble Corp. and Diamond Offshore Drilling Inc. in bankruptcy. Pacific Drilling SA earlier this month said it may return to bankruptcy court for the second time in less than three years, and Transocean Ltd., the world's biggest owner of deep-water oil rigs, has said it's exploring strategic alternatives. The offshore industry has struggled since oil prices plunged to less than $30 a barrel in 2016 after reaching more than $100 in mid-2014.