Seadrill announced a global settlement with an ad hoc group of bondholders, the official committee of unsecured creditors and other major creditors in its Chapter 11 cases.
As a result of the settlement, approximately 70% of the Company’s bondholders by principal amount have now signed an agreement to support the Company’s restructuring. Approximately 99% of the Company’s bank lenders by principal amount had previously signed and remain party to the agreement. The settlement adds additional bondholders as commitment parties to the Company’s approximately $1 billion new capital raise and also significantly increases proposed distributions to general unsecured creditors under the Company’s Plan.
The settlement also includes an agreement regarding the amount and treatment of the claims of Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co., two shipyards that are party to new-build contracts with the Company.
Anton Dibowitz, C.E.O. and president of Seadrill, comments, “The settlement is a pivotal moment in our efforts to implement a broadly-consensual comprehensive restructuring plan. We now have virtually all of our bank lenders, a supermajority of our bonds, the official creditors’ committee, new-build contract counterparties, and our largest shareholder supporting our restructuring. We look forward to the successful implementation of the transaction in the near future.”
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