Offshore drilling rig contractor Seadrill said on Monday it has proposed to creditors to turn over its stakes in oil services firms Archer and Seadrill Seabras to redeem its outstanding secured notes, Reuters reported. The company controlled by Norwegian-born billionaire John Fredriksen has been in talks with creditors since the end of last year over new debt restructuring. Seadrill said it was approached by a group of noteholders in May about a potential deal, and it responded on Aug.
Offshore drilling rig contractor Seadrill’s ongoing attempt to restructure its massive debt could leave current shareholders with minimal or no ownership at all, the Oslo-listed company warned on Tuesday, Reuters reported. Demand for exploration and drilling has fallen further during the COVID-19 pandemic as oil firms seek to preserve cash, idling more rigs and leading to further overcapacity in the industry. Seadrill, controlled by Norwegian-born tycoon John Fredriksen, said it has failed to convince its 43 lenders to adjust the terms of its $5.7 billion bank debt.
Offshore oil servicers are going bust at the fastest pace in three years as explorers spurn high-cost drilling to deal with a worldwide slump in commodity prices, Bloomberg News reported. The debacle, triggered by the pandemic-driven drop in oil prices, has already claimed some of the biggest companies that supply rigs, transportation and other support services to deep-water drillers. Noble Corp. and Diamond Offshore Drilling Inc. have filed for Chapter 11 since the start of the pandemic-driven oil downturn, while Valaris Plc filed for bankruptcy Wednesday. Firms including Transocean Ltd.
Seadrill has written down the value of its oil drilling rigs by $1.2 billion and hired bankers and lawyers to evaluate a financial restructuring that could allow the company to reduce its $7.4 billion debt, it said on Tuesday, Reuters reported. The company on Monday announced its intention to delist from the New York Stock Exchange later this month, while maintaining its Oslo Bourse listing.
Billionaire John Fredriksen’s Seadrill Ltd. re-hired long time adviser Houlihan Lokey Inc. to engage in fresh talks with lenders, people familiar with the situation said, Bloomberg News reported. The drilling operator, which was already struggling before the coronavirus outbreak, plans to negotiate with creditors after its business was hurt further by the historic slump in oil prices over recent weeks, according to the people, who asked not to be identified because the information is private.
Billionaire John Fredriksen’s heavily indebted Seadrill Ltd. said it’s continuing talks with its banks as it reported a new loss amid a sluggish recovery in offshore drilling, Bloomberg News reported. The rig operator is under pressure less than two years after completing a massive restructuring that left it with almost $6 billion in bank debt. The company had counted on a strong market recovery that has yet to fully materialize as repayments come closer. Seadrill said the pace of the recovery has even slowed so far in 2020, as it reported a net loss of $199 million.