Seadrill filed with the U.S. Bankruptcy Court a Second Amended Joint Chapter 11 Plan (as Modified) of Reorganization, which notes, “On the Effective Date, the Debtors shall consummate the Equity Rights Offering and the Note Rights Offering in accordance with the Rights Offering Procedures. Holders of the Equity Rights shall receive the opportunity to purchase up to $48.1 million of the New Seadrill Common Shares in accordance with the Plan and Rights Offering Procedures. Holders of the Note Rights shall receive the opportunity to purchase up to $119.4 million in principal amount of the New Secured Notes in accordance with the Plan and Rights Offering Procedures.”
The Court subsequently confirmed Seadrill’s Plan, and the Company anticipates emerging from Chapter 11 within the next 60 to 90 days. Seadrill notes that the Plan strengthens its capital structure with $1.08 billion of new capital, extending and re-profiling $5.7 billion of secured bank debt and converting $2.3 billion of unsecured bonds to equity. Anton Dibowitz, C.E.O. and president of Seadrill Management, comments, “There is no question that Seadrill is a great company, with the best people in the industry and we will now have the platform and strengthened balance sheet to continue to develop our business and serve our customers with the high standards they have become accustomed.”
This offshore drilling contractor filed for Chapter 11 protection on September 12, 2017, listing $22 billion in pre-petition assets.
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