Despite the rebuttal, investors have panicked, sending Halliburton shares to levels not seen in a decade.

"There is no basis to the spurious rumour that (Halliburton) has filed for bankruptcy or that such a filing is contemplated," the company said.

In December of last year, Halliburton's stock fell more than 40 percent, touching an intraday low of $10.99, following a series of asbestos damages awards against the company totaling more than $150 million. The company has said that, at the time it expected the awards to be overturned on appeal.

The Dallas-based company's stock traded as low as $8.60, then regained some ground to close last Friday at $10.22, down 69 cents. Halliburton's stock has been as high as $49.25 in May of last year. For those not in the know, the current US Vice President, Mr Dick Cheney, who also played an instrumental role in the Gulf War as Defence Secretary, at one time headed Halliburton.