rss icon Subscribe
desktop mobile

Seadrill Nears Comprehensive Restructuring Deal

(File photo: Seadrill)

By Nerijus Adomaitis

Rig firm Seadrill, which last year filed for bankruptcy protection in a U.S. court, is working towards a comprehensive deal with all its creditors that could be concluded this week, it said in a court filing late on Friday.
Once the largest drilling rig operator by market value, Oslo-listed Seadrill filed its bankruptcy case in Texas on Sept. 12 after being hit hard by cutbacks in oil company investment following a steep drop in crude prices.
The company, controlled by Norwegian-born billionaire John Fredriksen, has been working with creditors on a restructuring plan to bring in more than $1 billion in fresh funding, allow it to maintain its fleet of rigs and pay creditors and staff.
"Although not all issues are resolved at this time, discussions have coalesced around a settlement structure that, if implemented, will increase recoveries to all general unsecured creditors," the firm said in the filing.
Crucially, discussions were trying to incorporate proposals made in two alternative plans by creditors Barclays Capital and an ad hoc group of bondholders, Seadrill said.
"The parties are working to reach a final agreement on settlement terms over the next week, and the Debtors anticipate they will further update the Court on Feb. 16, 2018 regarding the status of settlement discussions," Seadrill added.
Fredriksen's proposal would give unsecured bondholders a stake of about 15 percent in the company, but would wipe out stakes of its existing shareholders. The plan submitted by the bondholders would give them a bigger stake, but the precise size was unclear.
Fredriksen's original plan is backed by 97 percent of banks, who hold about $5.7 billion in secured loans. Their approval will be needed for any amendments.


(Writing by Gwladys Fouche)

Feb 12, 2018

 

Energy

Nor Lines Cargo Vessels to Bunker with Titan LNG

Photo: Titan LNG

Shipping company Nor Lines has allocated its two LNG-powered multipurpose vessels to a biweekly

Al-Iraqia Shipping Commences Bunkering Operations in Iraq

Photo: Al-Iraqia Shipping Services & Oil Trading

Al-Iraqia Shipping Services & Oil Trading (AISSOT) is shortly commencing bunkering operations at

China Surprises with Threat on US Energy Exports

© Dale Stagg / Adobe Stock

Beijing surprised oil markets with threats to levy tariffs on imports of U.S. crude oil

Finance

Navios Maritime Containers files for a $100 million IPO

Angeliki Frangou. File Photo: SUNY Maritime College

Monaco-based container ship company Navios Maritime Containers has filed with the SEC to raise up

Noble Group Sells Kamsarmax Dry Bulker to Aeolian Spirit Shipping

Image: Noble Group

The commodity trader Noble Group has entered into an agreement with Aeolian Spirit Shipping

China Surprises with Threat on US Energy Exports

Beijing surprised oil markets with threats to levy tariffs on imports of U.S. crude oil, natural gas and other energy products on Friday, just as China has risen to the top of

Maritime Apps