Trending

Home   >   Trending   

Seadrill asks for over 85% debt write off

Rig Lynx
  • By Rig Lynx
  • Apr 05, 2021
  • Category : Trending
  • Views : 356

 

Offshore drilling rig contractor Seadrill has asked creditors to write off more than 85% of its debts in exchange for a 99% stake in the reorganized company, a court filing showed.

 

The Oslo-listed firm controlled by Norwegian-born billionaire John Fredriksen in February filed for Chapter 11 bankruptcy protection in the United States, the second time it has done so in four years.

 

Seadrill has in the past year written off billions of dollars worth of assets due to a bleak outlook for the oil sector, and warned in March it expected offshore drilling demand to remain depressed well into 2021.

 

According to the latest restructuring proposal, first reported by Norwegian business daily Finansavisen on Saturday and seen by Reuters, the company could emerge from bankruptcy proceedings by September with $750 million in total debt and $300 million in fresh capital.

 

At the end of 2020, the company’s interest-bearing debt stood at $6.2 billion, including $5.7 billion in secured credit facilities and $515 million in secured notes due 2025, according to its annual report published on March 19.

 

Seadrill also said in its proposal it expected to raise a net $26 million by selling some of its rigs for scrap. The company said last year it could scrap up to 10 rigs out of the 34 it owns.

 

Current shareholders would end up with a stake of just 1% in the reorganized company, provided unsecured creditors and shareholders vote in support of the transaction, Seadrill added.

 

Fredriksen held 27.1% in Seadrill as of Feb. 28, according to the company’s annual report.

 

Seadrill and its creditors are expected to update the U.S. bankruptcy court in Houston about their negotiations on April 15.

 

Source: Reuters

 

Join our mailing list here


We are #1 on Google and Bing for the "Largest Mobile Energy Network"

Come join our community!

Download the Rig Lynx app here

Comments (0)

Leave Comment


Check out our other stories

Rig Lynx
Apr 16, 2021

  Noble Corporation has announced the completion of its acquisition of Pacific Drilling Company LLC ("Pacific Drilling"), effective on April 15, 2021. Pacific Drilling's high specification ultra-deepwater drillship fleet further enhances Noble's global position as an owner and operator of one of the most modern and technically advanced fleets in the offshore drilling industry.   Robert Eifler, President and Chief Executive Officer, said, "I am very pleased to have closed this transaction quickly and am delighted to welcome our new employees, customers, and shareholders into the Noble family.  This is an important step for Noble as we continue to strengthen our fleet and focus on delivering safe and efficient services to our global customers."   Source: Noble Drilling   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here

Rig Lynx
Apr 15, 2021

  It has now been confirmed that Santos has secured further time on moored semisub Valaris MS-1 to cover development drilling at its Barossa field development Phase 1 offshore Australia. The contract is expected to last for around 500 days, commencing from Q2 2022. The rig is due to commence another contract with Santos in the coming weeks at the Australian Van Gogh Infill Development Phase Two, which will keep in working into Q3/Q4 2021. It is expected that the rig will have an idle period between the two contracts. Source: Esgian Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here

Rig Lynx
Apr 14, 2021

  Coast Guard officials said that at least six people were rescued after a large commercial boat capsized in the Gulf of Mexico, 8 miles south of Port Fourchon, on Tuesday.   Lafourche Parish President Archie Chaisson III confirmed that 18 people were on board before the 129-foot lift boat, named the Seacor Power, took on water at about 4:30 p.m. Much of metro New Orleans had just been hit by an unexpectedly strong storm that overturned vessels and damaged property, particularly in coastal towns.   Along with local Coast Guard officials and good Samaritans helping with the rescue mission, a search plane out of Texas was also en route to the scene.   Bruce J. Simon, who appeared to be on a vessel at the time the large boat capsized, shared photos and video to his Facebook and said he had "NEVER heard so many MAYDAY calls in my life!" His post was shared by nearly 6,000 people.    Jefferson Parish Councilman Ricky Templet, whose district includes nearby Grand Isle, said multiple vessels were overturned or ruined on the island, and that some trailers and businesses were damaged. The National Oceanic and Atmospheric Administration reported that wind gusts had reached 75 mph in Grand Isle.   "We expected some winds and possible rains, but nothing as extensive as what took place on the coastal areas of Jefferson Parish," Templet said.   Messages left for the capsized vessel's owner, Seacor Marine, weren't immediately returned late Tuesday. According to specifications on the owner's website, the Seacor Power is an offshore construction jack-up that was built in 2002.   Source: NOLA.com   Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here