rss icon Subscribe
desktop mobile

Seadrill Nears Comprehensive Restructuring Deal

(File photo: Seadrill)

By Nerijus Adomaitis

Rig firm Seadrill, which last year filed for bankruptcy protection in a U.S. court, is working towards a comprehensive deal with all its creditors that could be concluded this week, it said in a court filing late on Friday.
Once the largest drilling rig operator by market value, Oslo-listed Seadrill filed its bankruptcy case in Texas on Sept. 12 after being hit hard by cutbacks in oil company investment following a steep drop in crude prices.
The company, controlled by Norwegian-born billionaire John Fredriksen, has been working with creditors on a restructuring plan to bring in more than $1 billion in fresh funding, allow it to maintain its fleet of rigs and pay creditors and staff.
"Although not all issues are resolved at this time, discussions have coalesced around a settlement structure that, if implemented, will increase recoveries to all general unsecured creditors," the firm said in the filing.
Crucially, discussions were trying to incorporate proposals made in two alternative plans by creditors Barclays Capital and an ad hoc group of bondholders, Seadrill said.
"The parties are working to reach a final agreement on settlement terms over the next week, and the Debtors anticipate they will further update the Court on Feb. 16, 2018 regarding the status of settlement discussions," Seadrill added.
Fredriksen's proposal would give unsecured bondholders a stake of about 15 percent in the company, but would wipe out stakes of its existing shareholders. The plan submitted by the bondholders would give them a bigger stake, but the precise size was unclear.
Fredriksen's original plan is backed by 97 percent of banks, who hold about $5.7 billion in secured loans. Their approval will be needed for any amendments.


(Writing by Gwladys Fouche)

Feb 12, 2018

 

Energy

Signs of Recovery in the US Gulf of Mexico

© Theerapong / Adobe Stock

Today's U.S. auction of Gulf of Mexico exploration leases drew tepid response from oil companies

Oil Companies Make Few Bids in US Offshore Lease Auction

© flyingrussian / Adobe Stock

Oil companies bid on less than 1 percent of the parcels offered in a sweeping U.S.

BP Offloads Last Two Stranded Oil Cargoes in China

© Samt Mendher / MarineTraffic.com

Oil major BP on Tuesday offloaded about 1 million barrels of Angolan crude from supertanker

Finance

Blockchain Benefits Still Murky for Most Commodities Trading

© Riza / Adobe Stock

Commodity firms and banks have been diving into blockchain pilot schemes over the last two years

New Fuel Rules Push Shipowners to Go Green with LNG

El Coquí, one of the world’s first ConRos powered by LNG (Photo: Crowley)

Tough new rules on marine fuel are forcing shipowners to explore liquefied natural gas as a

DP World cautions on trade, posts 2.1 pct drop in H1 net profit

(Photo: DP World)

DP World, one of the world's biggest port operators, posted a 2.1 percent drop in first-half net

Maritime Apps