Bankrupt offshore drilling contractor Seadrill has announced that it anticipates emerge from the chapter 11 process in the first half of July 2018 upon completion of its commitments under a plan of reorganization agreed to by stakeholders.
The restructuring plan, which was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas in April, will strengthen Seadrill’s balance sheet by raising $1.08 billion of new capital into the company, extending and re-profiling $5.7 billion of secured bank debt, and converting $2.3 billion of unsecured bonds to equity, while leaving employee, customer, and ordinary trade claims largely unaffected.
Under the plan, the existing Seadrill Limited will be wound up and the new company with the reorganized capital structure will assume the Seadrill name and re-list on both the NYSE and Olso Stock Exchange under ticker symbols.
Since confirmation by the court in April, Seadrill has been preparing to close all transactions and satisfy conditions of the plan.
Seadrill, once the world’s largest offshore driller by market value, filed for Chapter 11 bankruptcy protection in September with debt and liabilities of over $10 billion last September after a drop in oil prices in 2014 cut demand for rigs.
The plan of reorganization has received near-unanimous support from all Seadrill stakeholders including its largest shareholder, shipping tycoon John Fredriksen, who prior bankruptcy held to 24 percent of Seadrill through his personal family-fund Hemen Holdings.
“The near unanimous support for the Plan we put forward demonstrates the level of backing we have had from all stakeholders,” commented Anton Dibowitz, CEO and President of Seadrill Management Ltd. “It is also reflects the hard work we have all put in over many months to successfully recapitalize the Company.
“There is no question that Seadrill is a great company, with the best people in the industry and we will now have the platform and strengthened balance sheet to continue to develop our business and serve our customers with the high standards they have become accustomed,” Dibowitz added.