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Seadrill seeks to keep bankruptcy control as it aims for Ch. 11 exit

2 minute read

The SEADRILL 3, in Singapore, April 21, 2006 file photo. REUTERS/Luis Enrique Ascui/

  • Seadrill working to shore up more plan support in coming weeks
  • 58% of senior lenders back restructuring proposal

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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

Maria Chutchian reports on corporate bankruptcies and restructurings. She can be reached at maria.chutchian@thomsonreuters.com.

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