Road funding

Seadrill emerges from Chapter 11 bankruptcy

Offshore drilling contractor Seadrill announced its exit from Chapter 11 bankruptcy on Wednesday after completing its reorganization.

The plan was upheld by the U.S. Bankruptcy Court for the Southern District of Texas on October 26, 2021.

“The restructuring significantly reduced the company’s balance sheet by balancing approximately $4.9 billion of collateralized bank debt previously held across twelve silos, resulting in a streamlined capital structure with a single collateral silo. The company has also raised $350 million in new funding under plan,” Seadrill said.

Holders of existing shares in the company’s predecessor, Seadrill Limited, were reduced to 0.25% of their existing holdings, while claims by the company’s employees, customers and ordinary exchanges were unaffected by the restructuring, Seadrill said.

“The company’s simplified capital structure and the substantial cash raised under the plan provide the company with a solid foundation to seize opportunities in the offshore drilling industry and increase value for its stakeholders,” the company said. offshore drilling company.

Stuart Jackson, CEO of Seadrill, said: “Our exit from Chapter 11 completes the realignment of our balance sheet. I am grateful to all of our employees, customers, partners, suppliers, creditors and shareholders for their support throughout this long process. “Our restructured balance sheet gives us greater liquidity and lower debt leverage. With this solid financial footing established and the market recovery well underway, Seadrill will focus on disciplined capital investments, cost containment and contract risk management to maintain its leadership position in reshaping the industry.

Additionally, as part of the restructuring plan, Seadrill has now appointed a newly constituted Board of Directors, consisting of Julie Johnson Robertson (Chair of the Board), Mark McCollum (Chair of the Audit Committee), Karen Dyrskjot Boesen, Jean Cahuzac, Jan B Kjærvik, Andrew Schultz and Paul Smith.

Julie Robertson, Chairman of the Board, said: “I am delighted to have been chosen to chair the new Board of Directors who collectively bring their commercial, operational and financial expertise to guide Seadrill as it takes its place. in reshaping the offshore drilling sector. It has been a long road to the emergence of Chapter 11 and I would like to take this opportunity to thank the outgoing members of the Board of Directors for their diligent guidance throughout this process and to thank the management team and employees for having maintained safety leadership and operational excellence through difficult times.