In the last trading session, the stock price of Seadrill Ltd (NYSE:SDRL) declined more than 6% to close the day at $0.270. On February 26, 2018, the company succeeded in reaching an international settlement with the official group of unsecured creditors, a group of bondholders, and other key creditors in its Chapter 11 matters.
As an outcome of the settlement, around 70% of Seadrill’s bondholders by principal sum have now finalized a deal to support the firm’s restructuring. Around 99% of the firm’s bank lenders by principal sum had previously finalized and remain party to the deal. Anton Dibowitz, the President and CEO of Seadrill Management, expressed that this settlement is a key moment in their initiatives to deploy a broadly-consensual extensive restructuring program.
They now have virtually all of their bank lenders, a supermajority of their bonds, the authorized creditors’ committee, new build deal counterparties, and their major shareholder supporting their restructuring. They look forward to the remarkable implementation of the deal in the imminent future.
The settlement adds more bondholders as commitment entities to the firm’s new capital raise of approximately $1 billion and also considerably increases planned distributions to general unsecured creditors following the plan. This settlement also comprises a deal regarding the sum and treatment of the dues of Daewoo Shipbuilding & Marine Engineering Co., Limited and Samsung Heavy Industries Co., Ltd., two shipyards party to new build contracts with the firm.
To effectuate the settlement, Seadrill executed changes to its restructuring support deal and investment deal, which are counted in a Form 6-K to be filed with the SEC on February 26, 2018. Post executing the changes, the firm submitted a revised plan of restructuring and disclosure statement with the law court overseeing its chapter 11 matters in the Southern District of Texas.