BY Fraser Tennant
Following a year-long Chapter 11 bankruptcy process, offshore drilling rig contractor Seadrill Limited has completed its reorganisation, restructured its debt, sourced substantial liquidity and emerged from the depths in a strong position to execute its business plan.
Seadrill’s plan of reorganisation has equitised approximately $2.4bn in unsecured bond obligations, more than $1bn in contingent newbuild obligations, substantial unliquidated guaranty obligations, and $250m in unsecured interest rate and currency swap claims.
The company will also have access to over $1bn in fresh capital due to extending near-term debt maturities. In addition, a newly constituted board of directors has been appointed, consisting of John Fredriksen as chairman and Harald Thorstein, Kjell-Erik Østdahl, Scott D. Vogel, Peter J. Sharpe, Eugene I. Davis, and Birgitte Ringstad Vartdal as directors.
Once recognised as the world’s largest offshore driller, the company was forced to seek protection from creditors when it was unable to repay the massive debts it amassed during the boom years of buying new rigs.
“I would like to thank our customers, vendors and financial stakeholders for their continued loyalty and support throughout the restructuring process,” said Anton Dibowitz, chief executive of Seadrill Management. “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."
Furthermore, in accordance with its new reporting obligations, Seadrill has stated that it will issue its next earnings report in November 2018, which will include half year and third quarter 2018 results and reflect fresh start reporting.
During the course of the restructuring process, Seadrill was principally advised by Kirkland & Ellis LLP, Slaughter and May, Advokatfirmaet Thommessen AS, Jackson Walker LLP, Houlihan Lokey Capital, Inc, Morgan Stanley and Alvarez & Marsal North America, LLP.
Mr Fredriksen concluded: "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."