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Seadrill files for Chapter 11 bankruptcy

Published 09/12/2017, 08:35 PM
Updated 09/12/2017, 08:40 PM
© Reuters.  Seadrill files for Chapter 11 bankruptcy
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(Reuters) - Offshore drilling services provider Seadrill Ltd (OL:SDRL) said on Tuesday it had filed for Chapter 11 bankruptcy and entered into a restructuring agreement with bank lenders, bondholders and a consortium of investors.

The company said in a statement the agreement delivered $1.06 billion of new capital, comprising $860 million of secured notes and $200 million of equity, and addressed Seadrill's liabilities, including funded debt and other obligations.

Seadrill said it had over $1 billion in cash at the time of the court filing in the Southern District of Texas and it did not require any debtor-in-possession financing.

As part of the Chapter 11 filing, the company sought "first day" motions that, when granted, would enable day-to-day operations to continue as usual.

Seadrill said it had ring-fenced its non-consolidated affiliates including Seadrill Partners Llc, Seamex Ltd, Archer Ltd and their respective subsidiaries from the company's restructuring. These non-consolidated affiliates did not file Chapter 11 cases.

Houlihan Lokey Inc served as Seadrill's financial advisor while Alvarez & Marsal served as its restructuring advisor.

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