Update: This article, originally published by Reuters, has been updated to include a statement by Seadrill addressing a reported inaccuracy in its lede.
Offshore driller Seadrill Ltd has requested an additional four months to retain control of its bankruptcy proceeding, saying it is still working to drum up as much support as possible for its proposed reorganization plan.
The company, represented by Kirkland & Ellis, made its request in a motion filed on Tuesday, a few weeks before Seadrill is scheduled to present its proposed plan for approval to U.S. Bankruptcy Judge David Jones in Houston. The plan aims to reduce the company’s $5.6 billion debt stack by $4.9 billion and raise $350 million in new financing. Senior lenders will take over most of Seadrill’s equity.
The company has holders of 58% of its senior loans on board with its proposal. The company said in Tuesday’s filing that it is still “working to obtain the acceptance of all voting classes” for its plan and that an extension of its exclusive period to file a plan is critical to ensuring its plan confirmation and emergence from bankruptcy move ahead smoothly.
Seadrill has faced opposition to its reorganization efforts since the outset of the Chapter 11 case, which began in February, from a group of lenders that argue a sale is a better option for maximizing the company’s value. Seadrill said in Tuesday’s filing that it is will “work constructively with opponents to the plan to resolve any remaining open issues.”
The case is In re Seadrill Ltd, U.S. Bankruptcy Court, Southern District of Texas, No. 21-30427.
For Seadrill: Anup Sathy, Ross Kwasteniet, Brad Weiland, Spencer Winters and Christopher Marcus of Kirkland & Ellis; and Matthew Cavenaugh, Jennifer Wertz, Vienna Anaya and Victoria Argeroplos of Jackson Walker
Update:
Seadrill has reached out to Offshore Engineer over an alleged inaccuracy in the lede of the article: "Offshore driller Seadrill Ltd has requested an additional four months to retain control of its bankruptcy proceeding, saying it is still working to drum up as much support as possible for its proposed reorganization plan."
Here is the company's statement: "In fact, Seadrill filed a routine motion to extend its period of exclusivity. This is standard when a period of exclusivity is to expire. It does not affect Chapter 11 proceedings and is totally unrelated to the Voting Process. "