Seadrill announces timeline for expected emergence from chapter 11
Seadrill announced that it anticipates emerging from the chapter 11 process in the first half of July 2018.
As previously announced on 17 April 2018, the court overseeing the company’s chapter 11 cases entered an order confirming Seadrill’s plan of reorganization. Since confirmation of the plan, the company has been preparing to close the plan transactions and satisfy conditions precedent, which will occur on the effective date of the plan anticipated to be in the first half of July 2018.
The existing Seadrill will be wound up, and the new company with the reorganized capital structure will assume its name. Seadrill plans to re-list the new company’s common stock on both the New York Stock Exchange and the Oslo Stock Exchange as before, retaining the same ticker symbols as before. Listing for both exchanges is expected to occur during July 2018, shortly after the effective date.
The plan will result in the equitization of approximately $2.3 billion in unsecured bond obligations, more than $1 billion in contingent newbuild obligations, substantial unliquidated guaranty obligations and more than $250 million in unsecured interest rate and currency swap claims, while leaving employee, customer and ordinary trade claims largely unimpaired.
On the effective date, the company will issue its equity, debt and cash distributions per the terms of the plan. Allocations to certain existing stakeholders and new capital providers will depend on the results of the equity and notes rights offerings.
