Seadrill emerges from Chapter 11 bankruptcy

Offshore contract driller Seadrill is out of Chapter 11 after completing its reorganization plan upheld by the U.S. Bankruptcy Court for the Southern District of Texas last October.

The restructuring significantly lightened the company’s balance sheet by balancing $4.9 billion in secured bank debt previously held across twelve silos, streamlining the capital structure with a single collateral silo. The company also raised $350 million in new funding as part of its reorganization plan. Holders of existing shares in the company’s predecessor, Seadrill Limited, were reduced to 0.25% of their existing holdings, while the claims of the company’s employees, customers and ordinary traders were unaffected. through restructuring.

“Our restructured balance sheet provides us with greater liquidity and lower debt leverage,” said Stuart Jackson, Seadrill’s Managing Director, “With this strong capital base established and the market recovery well underway, Seadrill will focus on disciplined capital investments, cost control and contract risk management.”

Seadrill filed for bankruptcy protection in November 2020, seeking to restructure more than $3 billion in debt.

During the second half of 2021, Seadrill sold six cold stack drill rigs – West Orion, West Navigator, West Eminence, West Pegasus, West Freedom, and Alpha West. Sales proceeds totaled $36 million. Seadrill operates 14 rigs, including seven jack-ups, five floats and two harsh environment units.

The backlog in February 2022 was $2.2 billion. During the second half of 2021, the company obtained new work for the hercules west with Equinor for two wells offshore Canada. the Western Gemini secured a four-well contract plus an options contract in Angola with an unnamed party. Seadrill’s two US Gulf of Mexico platforms, the Seven Louisiana and West Neptune, received new offers and extensions that will allow them to work for most of the year.

As part of the reorganization plan, a newly constituted board of directors of the company was appointed. The chair of the board is former Noble Drilling boss Julie Johnson Robertson. Mark McCollum was chosen as chairman of the audit committee. Other new board members include Karen Dyrskjot Boesen, Jean Cahuzac, Jan B. Kjærvik, Andrew Schultz and Paul Smith.

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