Seadrill Nears Comprehensive Restructuring Deal

By Nerijus Adomaitis
Monday, February 12, 2018
Rig firm Seadrill, which last year filed for bankruptcy protection in a U.S. court, is working towards a comprehensive deal with all its creditors that could be concluded this week, it said in a court filing late on Friday.
Once the largest drilling rig operator by market value, Oslo-listed Seadrill filed its bankruptcy case in Texas on Sept. 12 after being hit hard by cutbacks in oil company investment following a steep drop in crude prices.
The company, controlled by Norwegian-born billionaire John Fredriksen, has been working with creditors on a restructuring plan to bring in more than $1 billion in fresh funding, allow it to maintain its fleet of rigs and pay creditors and staff.
"Although not all issues are resolved at this time, discussions have coalesced around a settlement structure that, if implemented, will increase recoveries to all general unsecured creditors," the firm said in the filing.
Crucially, discussions were trying to incorporate proposals made in two alternative plans by creditors Barclays Capital and an ad hoc group of bondholders, Seadrill said.
"The parties are working to reach a final agreement on settlement terms over the next week, and the Debtors anticipate they will further update the Court on Feb. 16, 2018 regarding the status of settlement discussions," Seadrill added.
Fredriksen's proposal would give unsecured bondholders a stake of about 15 percent in the company, but would wipe out stakes of its existing shareholders. The plan submitted by the bondholders would give them a bigger stake, but the precise size was unclear.
Fredriksen's original plan is backed by 97 percent of banks, who hold about $5.7 billion in secured loans. Their approval will be needed for any amendments.


(Writing by Gwladys Fouche)
Categories: Energy Finance Legal Offshore Offshore Energy

Related Stories

SBM Offshore, SLB to Optimize FPSO Performance Using AI

MDL Secures Cable Laying Job in Asia Pacific

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

PXGEO Nets First Seismic Survey off Malaysia

SPE Offshore Europe 2025 set to drive transformational change for the energy sector

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Yinson Production, “K” LINE Target Europe's CCS with FSIU and LCO2 Solutions

ABL Lands Work on BP’s Indonesian Gas and CCUS Project

Current News

Ventura Offshore’s Semi-Sub Rig to Keep Drilling for Eni in Asia

SBM Offshore, SLB to Optimize FPSO Performance Using AI

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com