Seadrill Reorganization Plan Accepted by Creditors And Shareholders
All voting classes of stakeholders accepted the reorganization plan of offshore drilling company Seadrill, including all 12 credit facilities and general unsecured creditors and shareholders.
Seadrill stated that over 96 percent of secured lenders voted, and over 88 percent of secured lenders accepted the plan.
The company added that, based on these results, it was on track to have its reorganization plan confirmed at the confirmation hearing scheduled for October 26, 2021.
If the plan is confirmed by the Court on that date, Seadrill is targeting exiting chapter 11 proceedings approximately 60 days thereafter, subject to certain customary conditions, including certain antitrust approvals.
“The near-unanimous acceptance of the Plan by our lenders is another important step towards Seadrill’s emergence from chapter 11. This has been a long journey to deliver broad support across our creditor constituency, but I am confident that our eventual emergence will place us back at the heart of a sector collectively going through significant re-adjustment and reinforce our position as a market leader,” Grant Creed, Seadrill CFO, said.
The deadline for creditors to have submitted votes on the plan was October 7. The results are subject to ongoing review by the Prime Clerk, Seadrill’s balloting agent, and remain subject to change.
The Prime Clerk will file a report certifying the final voting results to the United States Bankruptcy Court for the Southern District of Texas by October 22, 2021.
Seadrill reminded its shareholders that, under the plan of reorganization, their holding in the post-emergence entity will drop to 0.25 percent.
To remind, Seadrill filed for bankruptcy protection at a court in the U.S. state of Texas in early February this year. This was the second time in four years the company entered into Chapter 11 restructuring.
The company had to request bankruptcy protection after failing to win consent from bank lenders to postpone payments on $5.7 billion of debts.
The company’s debt stood at $6.2 billion at the end of 2020, including $5.7 billion in secured credit facilities and $515 million in secured notes due 2025. Seadrill operates 42 rigs, which includes drillships, jack-ups, and semi-submersibles.
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