Chapter 11 filing for Asia Offshore Drilling

Chapter 11 cases have been filed in the Southern District of Texas for Seadrill’s wholly-owned subsidiaries under the Asia Offshore Drilling brand.

“The Chapter 11 cases were filed as a protective measure to support Seadrill’s broader comprehensive financial restructuring and will in no way affect the safe and efficient operation of the AOD offshore drilling units,” Seadrill stated in a release.

As a consequence of the Chapter 11 filings, the forbearance agreement announced by Seadrill last week in respect of nine out of the group’s 12 senior secured credit facility agreements has been terminated.

Asia Offshore Drilling, which owns three jackup rigs, was previously a joint venture between Seadrill and Thailand’s Mermaid Maritime until Seadrill moved to take full control in September 2020.

John Fredriksen’s Seadrill has been in serious financial trouble for the last four years. In 2017, it filed for chapter 11 bankruptcy protection. In June last year the company delisted from the New York Stock Exchange as well as making plans to axe 30% of its staff.

Fredriksen, 75, has described Seadrill’s restructuring as the most complex he has seen is in his whole career.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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