After more than 12 months of negotiations – the most complex in John Fredriksen’s life – the Norwegian tycoon has managed to reach a settlement with bondholders and creditors in Seadrill’s chapter 11 cases.
Some 70% of the company’s bondholders by principal amount have now signed an agreement to support the company’s restructuring. Approximately 99% of the company’s bank lenders by principal amount had previously signed and remain party to the agreement.
Anton Dibowitz, CEO and president of Seadrill Management, commented: “The settlement is a pivotal moment in our efforts to implement a broadly-consensual comprehensive restructuring plan. We now have virtually all of our bank lenders, a supermajority of our bonds, the official creditors’ committee, newbuild contract counterparties, and our largest shareholder supporting our restructuring. We look forward to the successful implementation of the transaction in the near future.”
The settlement adds additional bondholders as commitment parties to the company’s approximately $1bn new capital raise and also significantly increases proposed distributions to general unsecured creditors under the plan.
