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Offshore driller Seadrill files for bankruptcy protection in US

EBR Staff Writer Published 14 September 2017

Offshore drilling contractor Seadrill has filed for bankruptcy protection in the US while reaching a restructuring agreement with most of its senior lenders to inject $1.06bn of new capital into the company.

Seadrill, which is headquartered in Bermuda but managed from London, said that it has struck the restructuring deal with over 97% of its secured bank lenders, 40% of its bondholders along with an investor consortium led by Hemen, its largest shareholder.

As a result of the deal, the company will receive $860m of secured notes and $200m.

The restructuring plan is expected to help Seadrill to continue operating its large, modern fleet of drilling units, giving it a five-year runway.

To execute the restructuring agreement, Seadrill has filed for bankruptcy protection in the Southern District of Texas along with the agreed restructuring plan. 

Seadrill, after the completion of the restructuring process, anticipates having a strong cash position and good liquidity to benefit from once the market recovers.

Seadrill Management CEO and president Anton Dibowitz said: “With our improved capital structure, we will be in a strong position to capitalise when the market recovers.

“The continued focus and dedication of all our employees throughout this process has been exceptional.  It is due to our people's commitment to deliver safe, efficient operations day in, day out that we have succeeded in reaching this restructuring agreement.”

Seadrill operates from its regional offices in Oslo, Dubai, Houston, Rio De Janeiro and Ciudad del Carmen and has a diversified fleet of 68 rigs to carry out its offshore drilling contracts.

Image: Seadrill’s T15 rig in offshore drilling operation. Photo: courtesy of Seadrill Limited.