Seadrill Gets Court Approval to Cut Debt, Exit Bankruptcy

Maria Chutchian
Wednesday, October 27, 2021

Offshore driller Seadrill Ltd on Tuesday obtained court approval for its reorganization plan, clearing the way for it to emerge from bankruptcy.

U.S. Bankruptcy Judge David Jones in Houston signed off on the plan during a virtual hearing. Under the plan, creditors will exchange $4.9 billion in debt for equity in the company. Seadrill will also raise $350 million in new financing.

Represented by Kirkland & Ellis, Seadrill filed its second bankruptcy since 2017 in February with $5.6 billion in secured debt, blaming its second trip to Chapter 11 on the sustained downturn in the oil and gas market and economic impact of the COVID-19 pandemic.

The company expects to exit bankruptcy in about 60 days.

"Confirmation of the plan by the court is a watershed moment for Seadrill and one we should celebrate as we move into the final stages to emerge from Chapter 11,” Seadrill CEO Stuart Jackson said in a statement.

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

Categories: Finance Drilling Rigs Industry News Activity Drilling

Related Stories

Oil Rebounds to Above $76 on Speculation Omicron-related Drop Exaggerated

Indonesia Offers 8 Oil and Gas Blocks for Bids

Lundin Energy Gets Drilling Permit for Norwegian Sea Wildcat

Current News

Volvo Penta's Propulsion for American Offshore Services' CTVs

Report: Lundin Energy Pondering Sale

Shell Eyes Return to Libya

Carnarvon to Spud Buffalo-10 Well in Timor Sea in December

Subscribe for OE Digital E‑News