Seadrill did not win consent to postpone funds on money owed reaching $5.7 billion.
The firm’s Board of Directors introduced that Chapter 11 circumstances have been filed within the Southern District of Texas in respect of Seadrill and its consolidated subsidiaries.
These filings are made along with the Chapter 11 circumstances filed individually for Seadrill GCC Operations Ltd, Asia Offshore Limited, Asia Offshore Rig 1 Limited, Asia Offshore Rig 2 Limited and Asia Offshore Rig three Limited, as introduced by the Company on February 7, 2021. The Chapter 11 filings don’t embody Seadrill New Finance Limited and its subsidiaries; Seabras Servicos de Petroleo SA, Seadrill JU Newco Bermuda Limited, Seadrill Member LLC, Seadrill Mobile Units UK Limited, Seadrill Partners LLC Holdco Limited, Seadrill Seabras SP UK Limited, Seadrill Seabras UK Limited, Seadrill Seadragon UK Limited, Seadrill SeaMex 2 de Mexico S de RL de CV, Seadrill SeaMex SC Holdco Limited, Seadrill SKR Holdco Limited, Sevan Drilling Rig VI AS, and Sevan Drilling Rig VI Pte Ltd.
As a part of the Chapter 11 circumstances, Seadrill filed first day motions that, when granted, will allow day-to-day operations of the Seadrill Group to proceed as common. Specifically, Seadrill has requested the authority to pay key commerce collectors and worker wages and advantages with out change or interruption and expects it can pay all suppliers and distributors in full underneath regular phrases for items and providers supplied throughout the Chapter 11 circumstances. At the purpose of submitting, Seadrill has roughly $650m in money and doesn’t require debtor-in-possession financing.
The Chapter 11 circumstances are opened to facilitate a steadiness sheet restructuring which can allow Seadrill to proceed to function its fashionable fleet of drilling models. It is predicted that it will result in vital equitization of debt which is more likely to lead to minimal or no restoration for present shareholders. As a consequence of the Chapter 11 circumstances, Seadrill will submit an utility to the Bermuda Supreme Court for the appointment of Joint Provisional Liquidators underneath Bermuda regulation to supervise the Chapter 11 circumstances along with the Board of Directors of the Company.
Commenting at this time, Stuart Jackson, CEO of Seadrill, mentioned:
“This announcement marks the beginning of the courtroom supervised course of that can create an organization that’s financially sustainable for the long run. We are working carefully with our stakeholders to make sure we obtain an final result that offers us the flexibleness to climate the low factors in our trade cycles, while positioning us properly for market restoration.
I want to thank all our stakeholders for his or her continued help as we transfer by way of this authorized course of, particularly, our clients, distributors and workers, all of whom display continued help of our protected and environment friendly operational supply.”
(Source: Seadrill – Image: Drillship West Capricorn)
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