Seadrill Partners, the limited liability company formed by John Fredriksen’s Seadrill Limited has filed for chapter 11 after negotiations with an ad hoc group of lenders regarding a reorganisation of the company’s balance sheet.
“In consultation with—and with the support of—the ad hoc group, the Company has filed voluntary petitions under chapter 11 of the Bankruptcy Code to preserve value and to continue the operation and marketing its assets. The Company intends to use the bankruptcy process to ensure that all customer, vendor and employee obligations are met without interruption and to complete a consensual restructuring of its debt,” Seadrill said in a short statement.
Seadrill Partners, which posted a first half operating loss of $923.6m, has a fleet consisting of four drillships, four semi-submersible rigs and three tender rigs.
NYSE-listed Seadrill Limited filed for chapter 11 in 2017 as part of a reorganisation, however Seadrill Partners was not included after it was successfully ringfenced.