Ocean Rig cut to Hold from Buy at Deutsche Bank

|About: Ocean Rig UDW Inc. (ORIG)|By:, SA News Editor

Ocean Rig UDW (ORIG -2.7%) is downgraded to Hold from Buy with a $1 price target, cut from $4, at Deutsche Bank, which says ORIG's potential restructuring likely would prove unfavorable for existing shareholders.

Deutsche Bank says the decision to take on restructuring was “prompted by prepayments triggered by contract terminations and the restructuring of shipyard commitments with an undercurrent of self-preservation."

Shares already have dropped 63% since the possibility of reorganization was mentioned on Aug. 11, taking the market by surprise despite the company's difficult cash and liquidity position.

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