Seadrill reorganisation plan confirmed by US court

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.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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