Houston-based drilling expert Superior Energy Services is to emerge debt-free from bankruptcy after its plan of reorganization received court approval.

The U.S. Bankruptcy Court for the Southern District of Texas confirmed the reorganization plan, which allows Superior to convert into equity an estimated $1.3 billion in debt.

“This confirmation order marks a key milestone in the company’s reorganization process, and we look forward to emerging in the near future with a strengthened capital structure and greatly improved ability to compete,” said CEO David Dunlap. 

The global oilfield services operator filed for Chapter 11 protection last September, joining scores of other energy firms that succumbed to the devastating impact on demand and spending wrought by...