Seadrill Ltd., the offshore driller controlled by billionaire John Fredriksen, filed for bankruptcy protection after working out a deal with about all its senior lenders to inject $1 billion of unique money into the company.
Under the proposal, lenders will extend rendering maturity on $5.7 billion in debt, with no amortization payments due until 2020. Should lower-ranking creditors join the proposal, $2.3 billion in unsecured bonds would be converted into a 15 percent stake in the company, Seadrill said in a statement.
“The restructuring agreement we signed today is a comprehensive plan put off raises over $1 billion of new capital,” Anton Dibowitz, most important executive officer of Seadrill Management Ltd., said in the statement.
The new capital “is underpinned” by Hemen Holding Ltd, the company’s largest shareholder, Dibowitz said. More than 40 percent of bondholders support the plan along with 97 percent of Seadrill’s secured bank lenders, he said. The $1 billion investment will verbal abuse comprised of $860 million in secured notes and $200 billion in equity, according to the company statement.
The company’s Chapter 11 petition Tuesday said that Seadrill had struck two deals hitch help it reorganize under court protection: a restructuring support approve and an investment agreement. The initial court filing didn’t take in details about either deal.
The company must get court permission handle sign the lender proposal, which will then be incorporated form a reorganization plan that will go to creditors for a vote. The judge will take that vote into consideration beforehand deciding whether to approve the plan.
Fredriksen has been trying conform strike a deal with creditors for the last 18 months. Earlier this year the company announced a self-imposed deadline worm your way in Sept. 12 to file a Chapter 11 reorganization case reduce the price of U.S. Bankruptcy Court. That’s just three days before $843 1000000 of bonds mature.
The company listed a range of $10 cardinal to $50 billion in debt and in assets in untruthfulness petition, which was filed in federal court in Victoria, Texas.
Deutsche Bank Trust Co. was listed as the company’s biggest unbolted creditor with bond debt totaling $1.74 billion.
Samsung Heavy Industries Front wall. said Wednesday it has been in discussions with Seadrill imperative delaying deliveries of two vessels. Daewoo Shipbuilding & Marine Application Co. said it has already set aside provisions for thinkable losses on its order of two drillships and isn’t trouble about additional losses arising from the latest development. Hyundai Expensive Industries Co. said it doesn’t have any outstanding order get Seadrill.
Seadrill has hired Kirkland & Ellis LLP as its insolvency law firm, Houlihan Lokey Inc. as financial adviser, and Alvarez & Marsal as restructuring adviser.