Seadrill Partners, an affiliate of offshore drilling firm Seadrill, said Tuesday it had emerged from Chapter 11 bankruptcy for which it had filed in December 2020.
The company said it has successfully completed its reorganization, turning around $2.8 billion in funded debt obligations into equity, and leaving the company debt-free on emergence.
As part of the reorganization plan, new management services agreements were entered into for the management of the company's offshore drilling units, and a transition services agreement was agreed to with the company's prior manager "that provides for a safe and efficient transition."
"Additionally, the plan has resolved all potential claims against the company alleged by related parties, secured and unsecured creditors," Seadrill Partners said.
"The Plan leaves the Company well-positioned to secure drilling contracts and invest in its high specification ultra-deepwater, harsh environment and tender rig fleet going forward," the company added.
Worth noting, on the effective date, existing equity interests in the company will be canceled, released, and extinguished and will be of no further force or effect.
The company will issue 20 million shares of the New Common Stock where 31.8% will be held by holders of super senior term loan claims against the company and certain of its Chapter 11 debtor-affiliates, and 68.2% of the New Common Stock held by holders of TLB secured claims against the company and certain of its Chapter 11 debtor-affiliates.
In accordance with the restructuring plan, a newly constituted Board of Directors of the Company was appointed Tuesday, consisting of Steven L. Newman (CEO/Director), Alan S. Bigman, John Bishop, Daniel C. Herz, and N. John Lancaster, Jr.
The company owns a fleet of four deepwater floaters, which include the drillships: the West Polaris and the West Capella, and the semisubmersibles: the West Leo and the West Sirius, and tender rigs Seadrill-T15, Seadrill-T16, and West Vencedor.