AOD business unaffected by Seadrill’s Chapter 11 filing

“AOD and its subsidiaries did not file Chapter 11 cases, and business operations are expected to be largely unaffected by Seadrill’s Chapter 11 filings,” Mermaid Maritime Public Company announced.

AOD is 33.76% owned by Mermaid Maritime and the remaining majority shares are owned by Seadrill.

“Mermaid Maritime wishes to announce that AOD and its subsidiaries have received, as part of Seadrill’s restructuring agreement, the benefit of a temporary waiver and forbearance from default that may have arisen under AOD’s bank credit facility agreement,” Mermaid Maritime stated.

“AOD has approximately $210m outstanding under its bank credit facility, which matures in April 2018. During the interim period, AOD will continue to evaluate options to reach a consensual solution amongst its shareholders and lenders,” it said.

Mermaid Maritime added that its shares in AOD have been fully paid up, and it has no corporate guarantees or other financial commitments to or on behalf of the AOD group.

AOD currently owns three KFELS B-Class high-specification jack-up drilling rigs. All three rigs are presently under contract in the Middle East through to 2019.

Seadrill and certain of its subsidiaries have filed pre-arranged Chapter 11 cases in the US Southern District of Texas together with an agreed restructuring plan.