Seadrill 2021 Limited has emerged from Chapter 11 after successfully completing its reorganization pursuant to its Chapter 11 plan of reorganization (the 'Plan'). The Plan was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on October 26, 2021.
The restructuring significantly delevered the Company’s balance sheet by equitizing approx. $4.9 billion of secured bank debt previously held across twelve silos, resulting in a streamlined capital structure with a single collateral silo. The Company also raised $350 million in new financing pursuant to the Plan. Holders of existing shares in the Company’s predecessor, Seadrill Limited, were reduced to 0.25% of their existing holdings, while the Company’s employee, customer, and ordinary trade claims were unaffected by the restructuring. The Company’s streamlined capital structure and the substantial liquidity raised pursuant to the Plan provide the Company with secure footing to pursue opportunities in the offshore drilling industry and grow value for its stakeholders.
Stuart Jackson, CEO of Seadrill, commented:
'Our emergence from Chapter 11 concludes the realignment of our balance sheet. I am grateful to all our employees, customers, partners, suppliers, creditors and shareholders for their support through this long process. Our restructured balance sheet provides us greater liquidity and lower debt leverage. With this firm financial footing established and market recovery well underway, Seadrill will focus on disciplined capital investment, cost containment, and contract risk management to maintain its position as a leader in the reshaping of the industry.'
The figures presented below highlight key financial metrics as of the Effective Date:
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Total cash of 486m, inclusive of $151m of restricted cash
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$300 million of first-lien new-money debt, comprised of a $175 million term loan facility and an undrawn $125 million revolving credit facility
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$683 million of second-lien takeback debt
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$50 million of unsecured convertible bonds
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Common shares issued of approx. 50 million
Source: Seadrill Limited
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