Seadrill Files Bankruptcy to Shrink Offshore Driller's Debt

Published in

Seadrill Ltd., the offshore driller controlled by billionaire John Fredriksen, filed for bankruptcy protection after working out a deal with almost all its senior lenders to inject $1 billion of new money into the company, Bloomberg News reported. Under the proposal, lenders will extend the maturity on $5.7 billion in debt, with no amortization payments due until 2020. Should lower-ranking creditors join the proposal, $2.3 billion in unsecured bonds would be converted into a 15 percent stake in the company, Seadrill said in a statement. “The restructuring agreement we signed today is a comprehensive plan that raises over $1 billion of new capital,” Anton Dibowitz, chief executive officer of Seadrill Management Ltd., said in the statement. The new capital “is underpinned” by Hemen Holding Ltd, the company’s largest shareholder, Dibowitz said. More than 40 percent of bondholders support the plan along with 97 percent of Seadrill’s secured bank lenders, he said. The $1 billion investment will be comprised of $860 million in secured notes and $200 million in equity, according to the company statement. Read more.