Fredriksen faces backlash over Seadrill restructuring plan

John Fredriksen faces a significant creditor backlash over his restructuring plans for Seadrill.

Last month Seadrill filed for chapter 11 bankruptcy protection in the US as it pushed through plans for $12.7bn of debt restructuring. The plan has the backing of 97% of its loan lenders, but just 40% of its bondholders.

Disgruntled bondholders have now hired Kristopher Hansen, a well-known restructuring attorney with Stroock & Stroock & Lavan, and Rothschild to seek an alternative plan.

A number of unsecured creditors have also hired veteran bankruptcy attorney Thomas Mayer and his law firm Kramer Levin Naftalis & Frankel to question the Seadrill plan, which many believe favours Fredriksen over smaller investors.

Local media in Norway has also reported that the Norwegian state faces significant exposure from Seadrill’s troubles.

Giek, the Norwegian export credit guarantee agency, has a $700m exposure to Fredriksen’s troubled rig business.

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.
Back to top button