Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Seadrill issues warning to investors as Chapter 11 looms

Seadrill issues warning to investors as Chapter 11 looms
John Fredriksen’s Seadrill is warning investors of losses ahead of likely schemes of arrangement or Chapter 11 restructuring.

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.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.