Seadrill Partners LLC announced that it has emerged from Chapter 11 after successfully completing its reorganization pursuant to its Chapter 11 plan of reorganization (the “Plan”). All conditions precedent to the restructuring contemplated by the Plan have been satisfied or otherwise waived.
The Plan has equitized approximately $2.8 billion in funded debt obligations, leaving the Company debt free on emergence. As part of the Plan, New Management Services Agreements were entered into for the management of the Company’s offshore drilling units and a Transition Services Agreement was agreed to with the Company’s prior manager that provides for a safe and efficient transition. Additionally, the Plan has resolved all potential claims against the Company alleged by related parties, secured and unsecured creditors.
The Plan leaves the Company well positioned to secure drilling contracts and invest in its high specification ultra-deepwater, harsh environment and tender rig fleet going forward.
Issuance of Shares of the New Common Stock
On the Effective Date, existing equity interests in the Company will be canceled, released, and extinguished and will be of no further force or effect. The Company will issue 20 million shares of the New Common Stock, which will be allocated as set forth below, in accordance with provisions of the Plan and issued on the Effective Date:
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31.8% of the New Common Stock held by holders of super senior term loan claims against the Company and certain of its Chapter 11 debtor affiliates: and
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68.2% of the New Common Stock held by holders of TLB secured claims against the Company and certain of its Chapter 11 debtor affiliates.
New Board of Directors
In accordance with the Plan, a newly constituted Board of Directors of the Company was appointed today, consisting of Steven L. Newman (CEO/Director), Alan S. Bigman, John Bishop, Daniel C. Herz, and N. John Lancaster, Jr.
Source: Seadrill Partners
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