Offshore drillship contractor Seadrill on Wednesday announced its emergence from Chapter 11 bankruptcy after successfully completing its reorganization.
The Plan was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on October 26, 2021.
"The restructuring significantly delevered the company’s balance sheet by equitizing approximately $4.9 billion of secured bank debt previously held across twelve silos, resulting in a streamlined capital structure with a single collateral silo. The company also raised $350 million in new financing pursuant to the plan," Seadrill said.
Holders of existing shares in the company’s predecessor, Seadrill Limited, were reduced to 0.25% of their existing holdings, while the company’s employee, customer, and ordinary trade claims were unaffected by the restructuring, Seadrill said.
"The Company’s streamlined capital structure and the substantial liquidity raised pursuant to the Plan provide the Company with secure footing to pursue opportunities in the offshore drilling industry and grow value for its stakeholders," the offshore drilling firm said.
Stuart Jackson, CEO of Seadrill, commented: “Our emergence from Chapter 11 concludes the realignment of our balance sheet. I am grateful to all our employees, customers, partners, suppliers, creditors, and shareholders for their support through this long process. “Our restructured balance sheet provides us greater liquidity and lower debt leverage. With this firm financial footing established and market recovery well underway, Seadrill will focus on disciplined capital investment, cost containment, and contract risk management to maintain its position as a leader in the reshaping of the industry.”
Also, as part of the restructuring plan, Seadrill has now appointed new a newly constituted Board of Directors, consisting of Julie Johnson Robertson (Chair of the Board), Mark McCollum (Chair of Audit Committee), Karen Dyrskjot Boesen, Jean Cahuzac, Jan B Kjærvik, Andrew Schultz, and Paul Smith.
Julie Robertson, Chair of the Board, commented: “I am pleased to have been selected to chair the new Board of Directors who collectively bring commercial, operational, and financial expertise to guide Seadrill as it takes its place in reshaping the offshore drilling sector. The road to emergence from Chapter 11 has been a long one and I would like to take this opportunity to thank the outgoing board members for their diligent guidance through this process and to thank the management team and the employees for maintaining safety leadership and operational excellence through challenging times.”