APRIL 18, 2018 — Offshore drilling contractor Seadrill Limited reports that its plan of reorganization has been confirmed by the U.S. Bankruptcy Court for the Southern District of Texas. Seadrill says the plan has near unanimous support from the company’s stakeholders and that emergence from Chapter 11 bankruptcy is expected within the next 60-90 days.
The plan extends maturities on more than $5 billion of bank loans, converts $2.3 billion in bond debt into equity in a reorganized company and will raise about $1 billion in new debt and equity through a rights offering led by SDRL’s largest shareholder, John Fredriksen, and investment firm Centerbridge Credit Partners, reports financial site Seeking Alpha.
Common shareholders will get only 2% of the equity in the post-bankruptcy company and lose the right to sue the company’s leaders and advisers over the moves that cut the value of their holdings, says Seeking Alpha.
Commenting today, Anton Dibowitz, CEO and President of Seadrill Management Ltd., said:
“Confirmation of the plan represents a major accomplishment for Seadrill and all our stakeholders. The near unanimous support for the plan we put forward demonstrates the level of backing we have had from all stakeholders. 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.”