Seadrill said that its banks had agreed to extend the negotiating period on a comprehensive restructuring plan for the rig owner until 12 September. It also received consent from lenders to extend the maturity date under the $400m credit facility from 31 August 2017 until 14 September 2017.
Meanwhile also received support from representing lenders of 84% exposure to $450m credit facility maturing 15 August to extend maturity until 14 September this year.
Seadrill repeated previous statements that comprehensive restructuring of the company would likely involve filing for Chapter 11 bankruptcy protection.
“It is likely that the comprehensive restructuring plan will require a substantial impairment or conversion of our bonds, as well as impairment and losses for other stakeholders, including shipyards. As a result, the company currently expects that shareholders are likely to receive minimal recovery for their existing shares,” it warned.
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