Superior Offshore files for bankruptcy

Superior Offshore International Inc., which has experienced a mass exodus of top-level executives amid serious liquidity issues, on Friday said it had filed for Chapter 11 bankruptcy protection in federal court.

The Houston subsea construction and diving services company will continue to operate its business as "debtor in possession" under the jurisdiction of the court, according to a press release.

The news comes after Superior Offshore had reported that more executives and board members resigned on April 24.

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E. Donald Terry resigned as president and chief executive officer as well as from the board. Terry took over in January when previous chief executive James Mermis resigned, shortly before several other top-level executives headed for the exits in March.

Also this week, Thomas Damon announced his resignation as the company's chief financial officer, less than a month into his new job. In addition, Steven Singer resigned as general counsel; Wayne Rose resigned as senior vice president, commercial; and David Weinhoffer was terminated as executive vice president.

Rose and Weinhoffer have been rehired by Superior to assist in the wind-down process, according to the company, which has laid off much of its staff.

James Persky, chairman of the board since November 2007, and Leon Codron, a board member since April 2007, have also resigned.

The company's board has appointed H. Malcolm Lovett Jr., chairman and CEO of Houston-based Strategic Capital Corp., as a director and chief restructuring officer. He will be the company's only executive officer, according to Superior.

Superior's board now includes Lovett and Eric Smith, a board member since April 2007.

The announcement about the latest stampede of executives heading out the door sent Superior Offshore shares even lower. The stock lost half of its value to close Friday at 25 cents.

On April 24, Superior (NASDAQ: DEEP) received a delisting notice from NASDAQ.

The company, which staged its initial public offering in April 2007 at $15 a share, has seen its stock price plummet as a strategic move into international markets backfired.