Seadrill has reached agreement with its banking group to extend the maturaties on $2.85bn in debt as its continues negotiations with banks, potential new investors and advisers to its bondholders on a comprehensive restructuring.
Although the restructuring plan is yet to be completed Seadrill issued a stark warning of substantial impairment, dilution or losses for its investors.
“Based on stakeholder and new money investor feedback, as well as the company's existing leverage, we currently believe that a comprehensive restructuring plan will require a substantial impairment or conversion of our bonds, as well as impairment, losses or substantial dilution for other stakeholders
“As a result, the Company currently expects that shareholders are likely to receive minimal recovery for their existing shares,” it warned.
Seadrill added it was preparing for a substantial restructuring that likely involved schemes of arrangement or Chapter 11.
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