April 4, 2017 / 5:20 AM / 2 years ago

BRIEF-Seadrill plans Chapter 11, current shareholders to see "minimal recovery"

April 4 (Reuters) - Seadrill Ltd:

* Announces today that it has reached agreement with its banking group to extend a series of key dates as part of company’s ongoing restructuring efforts.

* Company has reached an agreement to extend milestone to implement a restructuring plan from 30 april to 31 july 2017 and also to extend related covenant amendments and waivers expiring on 30 june 2017 to 30 september 2017

* Has also received lender consent to extend maturity dates of three facilities

* We expect implementation of a comprehensive restructuring plan will likely involve schemes of arrangement or chapter 11 proceedings, and we are preparing accordingly

* Company’s business operations remain unaffected by these restructuring efforts

* Will continue to meet its ongoing customer and business counterparty obligations

* As a result, company currently expects that shareholders are likely to receive minimal recovery for their existing shares

* We currently believe that a comprehensive restructuring plan will require a substantial impairment or conversion of our bonds, as well as impairment, losses or substantial dilution for other stakeholders Source text for Eikon: Further company coverage: (Reporting By Terje Solsvik)

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