Pacific Drilling SA (NYSE: PACD), a Luxembourg-based company that has its corporate headquarters in Houston, is working to avoid defaulting on debt and may consider filing for Chapter 11 bankruptcy protection.

The announcement, which was made in the company’s second-quarter earnings report on Aug. 3, came two days after CEO Christian Beckett stepped down to pursue other opportunities.

Beckett agreed to make himself available during the transition, which kicked off a string of promotions, according…