A unit of offshore driller Seadrill Ltd yesterday filed a fast-tracked reorganization plan in Houston bankruptcy court, where it expects to seek approval of the proposal today, Reuters reported. The case comes just a few months after its parent entity emerged from its own bankruptcy proceeding. That reorganization plan is scheduled to go into effect early this year. Seadrill New Finance Ltd’s chapter 11 case is intended to be the “final component” of the entire Seadrill Group’s restructuring efforts, according to a declaration from financial controller Tyson de Souza.
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Bermuda
Bermuda-based offshore drilling company Seadrill Limited has announced that a new, independent, seven-member board of directors will assume leadership of the new parent company of the Seadrill group upon emergence from chapter 11, the Royal Gazette reported. The company said that it received confirmation of its plan of reorganisation on October 26 and is targeting emergence early in 2022. Julie Johnson Robertson is chairwoman of the board, and Mark McCollum will chair the audit committee.
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Offshore driller Seadrill Ltd on Tuesday obtained court approval for its reorganization plan, clearing the way for it to emerge from bankruptcy, Reuters reported. Offshore driller Seadrill Ltd yesterday obtained court approval for its reorganization plan, clearing the way for it to emerge from bankruptcy. U.S. Bankruptcy Judge David Jones in Houston signed off on the plan during a virtual hearing. Under the plan, creditors will exchange $4.9 billion in debt for equity in the company. Seadrill will also raise $350 million in new financing.
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This weekend, Seadrill, the John Fredriksen-controlled rig operator announced that a forbearance agreement with a series of creditors expired on Friday, Shipping Watch reported. The forbearance agreement was announced by Seadrill just before New Year. The deal was entered with a series of creditors and applied to 9 of the group's 12 senior secured facilities, said that the company at the time. The expiration of the deal means that Seadrill could now be facing default claims from creditors if the company fails to make interest payments, according to the latest update.
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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.