Seadrill Unit Files for Bankruptcy Seeking 24-Hour Turnaround

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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. De Souza said there are no objections to the plan and that "there can be no question that this is in the best interests" of the company, which is represented by Kirkland & Ellis. Seadrill New Finance, which has around $535 million in secured debt, does not have its own operations. It serves as a holding company for a joint venture with an investment fund controlled by Fintech Holdings Ltd. The joint venture, SeaMex Ltd, holds five rigs in Mexico and underwent a restructuring last year after the state-owned petroleum company Pemex, a top customer, failed to pay up. Under the proposed plan, secured noteholders will take over most of the equity in Seadrill New Finance. The company, which says it has lined up the votes it needs from creditors, will ask U.S. Bankruptcy Judge David Jones to approve the plan on Wednesday afternoon. Read more.