Seadrill Warns of 'Likely' Bankruptcy Filing in U.S. or U.K.
April 04 2017 - 9:04AM
Dow Jones News
By Patrick Fitzgerald
Offshore drilling services company Seadrill Ltd. said Tuesday it
is planning a comprehensive debt restructuring that will likely
include a bankruptcy filing in the U.S. or the U.K.
"We expect the implementation of a comprehensive restructuring
plan will likely involve schemes of arrangement or chapter 11
proceedings, and we are preparing accordingly," the Bermuda-based
company said in statement.
A scheme of arrangement is a U.K. court-supervised
debt-restructuring process akin to a chapter 11 reorganization in
the U.S.
The publicly traded Seadrill is controlled by shipping magnate
John Fredriksen. It has been in talks with bondholders and lenders
over restructuring more than $10 billion in debt.
Seadrill also said it reached a deal with its banks to extend
several key dates tied to its restructuring. Those extensions
include pushing out the deadline to implement a restructuring plan
to July 31 from the end of this month as well as extending the
maturity dates until August and September on $2.85 billion in
loans
Seadrill said its business operations remain unaffected by these
restructuring efforts and the company will continue to meet its
ongoing customer and business obligations.
The company's stock closed at $1.67 a share Monday.
Write to Patrick Fitzgerald at patrick.fitzgerald@wsj.com
(END) Dow Jones Newswires
April 04, 2017 09:49 ET (13:49 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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