Less than three years after it emerged from a restructuring under chapter 11, John Fredriksen’s offshore drilling company Seadrill has again filed for chapter 11 in the Southern District of Texas.
Seadrill and its consolidated subsidiaries plan to conduct a balance sheet restructuring while under chapter 11, and have requested that it be able to continue day-to-day operations, including the authority to pay key trade creditors, employee wages and all suppliers and vendors.
Seadrill says that it has around $650m in cash and does not require debtor-in-possession financing.
Stuart Jackson, CEO of Seadrill, said: “This announcement marks the start of the court supervised process that will create a company that is financially sustainable for the long term. We are working closely with our stakeholders to ensure we achieve an outcome that gives us the flexibility to weather the low points in our industry cycles, whilst positioning us well for market recovery.
“I would like to thank all our stakeholders for their continued support as we move through this legal process, in particular, our customers, vendors and employees, all of whom demonstrate continued support of our safe and efficient operational delivery.”
The Chapter 11 filings do not include Seadrill New Finance Limited and its many subsidiaries. Earlier in the week, Seadrill announced that its Asian subsidiaries had filed for chapter 11.
As was the case with its previous chapter 11 filing, Seadrill expects minimal or no recovery for shareholders.