Seadrill Chapter 11 restructuring

Overview:

• Seadrill has announced that it is undertaking a restructuring via prearranged Chapter 11 cases.
• The agreement, reached with over 97% of its secured bank lenders, 40% of its bondholders and its investors, gives the company $1.06 billion of new capital consisting of $860 million in secured notes and $200 million in new equity finance.
• The company has also agreed to maturity deferrals over its secured credit facilities.
• The prearranged Chapter 11 cases were filed in the Southern District of Texas along with the restructuring plan.
• Seadrill is an offshore drilling company.
• According to Reuters the company has ring-fenced its non-consolidated affiliates from the process including the likes of Archer, Seadrill Partners and Seamex.
• Houlihan Lokey acted as financial adviser with Morgan Stanley as co-financial adviser on the restructuring.
• Alvarez & Marsal acted as restructuring adviser.

Sam Duke - Editor