August 24, 2017 / 6:48 AM / in a year

Seadrill sees decision on Chapter 11 restructuring by Sept 12

OSLO, Aug 24 (Reuters) - Offshore drilling contractor Seadrill plans to launch a long-awaited Chapter 11 debt restructuring in mid-September, and aims to raise $1 billion in new capital, the company said on Thursday.

Once the biggest offshore rig firm by market value and the crown jewel in the business empire of Norwegian billionaire John Fredriksen, Seadrill shares have fallen 99 percent from a September 2013 peak.

“Our primary objective at the moment is concluding final negotiations on our comprehensive restructuring plan, which is at an advanced stage and likely to be implemented via Chapter 11 proceedings on or before 12th September 2017,” Seadrill’s Chief Executive Anton Dibowitz said in a statement.

The restructuring plan was likely to involve raising about a billion dollars of new capital, a five-year extension for its bank facilities and require “substantial” impairment or conversion of its bonds, as well as impairment and losses for other stakeholders, including shipyards.

“As a result, the company currently expects that shareholders are likely to receive minimal or no recovery for their existing shares,” it added in a statement.

Seadrill’s business operations, however, remained unaffected by these efforts, and the company said it was able to re-contract a number of its rigs during the second quarter, reporting higher than expected quarterly revenues. (Reporting by Nerijus Adomaitis, editing by Terje Solsvik)

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