John Fredriksen’s Seadrill has announced that its plan of reorganisation has been confirmed by the US Bankruptcy Court after the plan was approved by creditors and shareholders earlier this month.
According to Seadrill, the plan strengthens its capital structure with $1.08bn of new capital, extending and re-profiling $5.7bn of secured bank debt, and converting $2.3bn of unsecured bonds to equity, while leaving employee, customer, and ordinary trade claims largely unaffected.
Once implemented, Seadrill expects to have a strong liquidity position which will enable the company to take advantage of a market recovery and deliver its business plan.
The company’s emergence from Chapter 11 is expected within the next 60-90 days.
“Confirmation of the plan represents a major accomplishment for Seadrill and all our stakeholders. The near unanimous support for the Plan we put forward demonstrates the level of backing we have had from all stakeholders. It is also reflects the hard work we have all put in over many months to successfully recapitalize the company,” said Anton Dibowitz, CEO and president of Seadrill Management.
