Swiss Court Decision Prevents Transocean Distribution
Transocean Ltd. on Thursday announced that the Administrative Court of the Canton of Zug rejected its appeal of the decree of the Commercial Register of the Canton of Zug to not register the first installment of the approximately $1 billion cash distribution approved by shareholders in May 2010. Transocean is considering its alternatives, including a possible appeal of the ruling to the Swiss Federal Supreme Court by January 24, 2011.
Transocean will determine whether or not to appeal the court's decision to the Swiss Federal Supreme Court following a detailed review of the court's reasons for the negative ruling. If Transocean does not appeal, the court decision will likely prevent Transocean from paying the first and all subsequent installments of the cash distribution.
Shareholders approved a distribution in the form of a par value reduction in an aggregate amount of 3.44 Swiss francs per issued share, equal to approximately 3.49 U.S. dollars (using an exchange rate of 1.00 U.S. dollar to 0.9862 Swiss francs as of the close of trading on December 8, 2010) to be calculated and paid in four installments. The proposal for the distribution was described in a proxy statement filed April 1, 2010 in connection with the Annual General Meeting on May 14, 2010 and approved by shareholders at the meeting. Under Swiss law, upon satisfaction of all legal requirements, Transocean was required to submit an application to the Zug Commercial Register to register the applicable par value reduction.