Seadrill Ltd confirms comprehensive restructuring plan to be implemented with prearranged Chapter 11 Cases (0.23 +0.03)
- Co has entered into a restructuring agreement with more than 97 percent of its secured bank lenders, approximately 40 percent of its bondholders and a consortium of investors led by its largest shareholder, Hemen Holding Ltd.
- The agreement delivers $1.06 billion of new capital comprised of $860 million of secured notes and $200 million of equity. The Company's secured lending banks have agreed to defer maturities of all secured credit facilities, totaling $5.7 billion, by approximately five years with no amortization payments until 2020 and significant covenant relief. Additionally, assuming unsecured creditors support the plan, the Company's $2.3 billion of unsecured bonds and other unsecured claims will be converted into approximately 15% of the post- restructured equity with participation rights in both the new secured notes and equity, and holders of Seadrill common stock will receive approximately 2% of the post-restructured equity.
- Seadrill has today filed prearranged chapter 11 cases in the Southern District of Texas together with the agreed restructuring plan. Company expects it will pay all suppliers and vendors in full under normal terms for goods and services provided during the chapter 11 cases. At the point of filing, Seadrill has over $1 billion in cash and does not require debtor-in-possession financing. The restructuring agreement contemplates a balance sheet restructuring that is not intended to affect the operations.
- North Atlantic Drilling (NADL), a majority owned subsidiary of Seadrill Limited, entered into a restructuring agreement with more than 97 percent of the Group's secured bank lenders, approximately 40 percent of the Group's bondholders and a consortium of investors, led by Seadrill's largest shareholder, Hemen Holding Ltd.