Norwegian-born shipping tycoon John Fredriksen speaks in Oslo, Norway, June 1, 2017. REUTERS/Ints Kalnins
Offshore drilling contractor Seadrill Limited announced Monday it has emerged from chapter 11 after successfully completing its commitments under a plan of reorganization.
The restructuring plan, which was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas in April, strengthens Seadrill’s balance sheet by providing over $1 billion of new capital, extending and re-profiling $5.7 billion of secured bank debt, and converting $2.4 billion of unsecured bonds to equity, while leaving employee, customer, and ordinary trade claims largely unaffected.
“The Plan has re-profiled the Company’s debt and provided substantial liquidity that puts the Company in a strong position to execute its business plan,” Seadrill said in statement on Monday.
Under the plan, the existing Seadrill Limited has been 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. Listing is anticipated for July 3, 2018.
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.
As part of the plan, Seadrill will issue 100 million shares of New Common stock, of which just 1.9% will go to existing shareholders.
Also as part of the plan, a newly-constituted Board of Directors was appointed, consisting of John Fredriksen as Chairman, Harald Thorstein, Kjell-Erik Østdahl, Scott D. Vogel, Peter J. Sharpe, Eugene I. Davis, and Birgitte Ringstad Vartdal.
“We are pleased to be emerging from chapter 11 and moving forward with a solid financial foundation on which we will continue to grow and strengthen our business,” said John Fredriksen.
Anton Dibowitz, CEO of Seadrill Management, commented, “I would like to thank our customers, vendors and financial stakeholders for their continued loyalty and support throughout the restructuring process. I would also like to thank all our employees for their continued hard work and dedication during this period and whose efforts were a key part of concluding this restructuring process.”
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 110,152 members that receive our newsletter.
Have a news tip? Let us know.
The Bureau of Ocean Energy Management (BOEM) is forging ahead with its offshore wind development plans in California, despite looming political uncertainties surrounding the incoming Trump administration. In a move...
Two of the world's biggest renewables players on Wednesday warned of challenges for the U.S. offshore wind sector under a presidency led by Donald Trump, flagging potential delays for the technology slammed by the president-elect.
Energy regulator Ofgem approved five new subsea power links from Great Britain to the continent and Ireland as the country seeks to profit from a boom in wind capacity and become a net electricity exporter by the end of the decade.
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 110,152 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
