SDRL: Seadrill Announces Confirmation of Plan of Reorganization

Rhea-AI Summary

Seadrill Limited has received confirmation from the U.S. Bankruptcy Court for the Southern District of Texas for its Plan of Reorganization, significantly supported by stakeholders. The Plan will enable Seadrill to exit Chapter 11 in approximately 60 days, contingent on customary approvals. It aims to raise $350 million in new financing while cutting liabilities by $4.9 billion, with existing shareholders’ stakes diminishing to 0.25%. CEO Stuart Jackson emphasized this milestone as pivotal for the company's future in offshore drilling.

Positive

• Court confirmation of the Plan allows Seadrill to exit Chapter 11 proceedings in approximately 60 days.
• The Plan raises $350 million in new financing.
• Liabilities will be reduced by $4.9 billion.

Negative

• Existing shareholders will see their holdings reduced to 0.25% post-emergence.

HAMILTON, Bermuda, Oct. 26, 2021 /PRNewswire/ -- Seadrill Limited ("Seadrill" or "the Company") (OSE:SDRL, OTCPK:SDRLF) announces that its Plan of Reorganization (the "Plan") has been confirmed by the U.S. Bankruptcy Court for the Southern District of Texas. Earlier this month, the Plan received overwhelming support from the Company's stakeholders.

Following the Court's approval of the Plan, Seadrill is targeting an exit of Chapter 11 proceedings in approximately 60 days. This is subject to certain customary conditions, including certain antitrust approvals.

The Plan raises $350 million in new financing and reduces the Company's existing liabilities by $4.9 billion, while leaving employee, customer, and trade claims unaffected. Existing shareholders will see their holding in the post emergence entity decrease to 0.25%.

Commenting today, Stuart Jackson, Seadrill Chief Executive Officer, said: "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. Achieving this milestone would not be possible without the collective efforts of our employees, customers, partners, suppliers, creditors and shareholders. The continued support from this broad Seadrill community is one of our greatest assets and will be critical to the success of our next chapter as we reinforce our position as a market leader.

"With emergence around the end of the year, we stand alongside our offshore drilling peers focused on safe and efficient delivery to our customers in an industry that continues to need to evolve.  Seadrill's strong brand will ensure we maintain a leadership position in future developments."

Copies of the Plan and Disclosure Statement, as well as other information regarding the Company's chapter 11 cases, are available at the following website: https://cases.primeclerk.com/SeadrillLimited/. 

About Seadrill

Seadrill is a leading offshore drilling contractor utilizing advanced technology to unlock oil and gas resources for clients across harsh and benign locations across the globe. Seadrill's high quality, technologically advanced fleet spans all asset classes allowing its experienced crews to conduct its operations from shallow to ultra-deep-water environments. The Company owns and/or operates 39 rigs, which includes drillships, jack-ups and semi-submersibles.

Seadrill is listed on the Oslo Børs and OTC Pink markets. For more information, visit https://www.seadrill.com/.

FORWARD LOOKING STATEMENTS

This news release includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, changes and trends in its business, the markets in which it operates and its restructuring efforts. These statements are made based upon management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company's regulatory filings and periodical reporting. The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward looking statement.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

CONTACT:

seadrill@hawthornadvisors.com

020 3745 4960

This information was brought to you by Cision http://news.cision.com

View original content:https://www.prnewswire.com/news-releases/sdrl-seadrill-announces-confirmation-of-plan-of-reorganization-301409047.html

SOURCE Cision AB

FAQ

What did Seadrill announce on October 26, 2021?

Seadrill announced the confirmation of its Plan of Reorganization by the U.S. Bankruptcy Court, allowing it to exit Chapter 11.

How much financing does Seadrill's Plan of Reorganization raise?

The Plan raises $350 million in new financing.

What are the expected outcomes of Seadrill's Plan of Reorganization?

The Plan aims to reduce Seadrill's liabilities by $4.9 billion and allow an exit from Chapter 11 proceedings in about 60 days.

What will happen to existing shareholders after Seadrill emerges from bankruptcy?

Existing shareholders will see their holdings decrease to 0.25% in the post-emergence entity.