SDRLF - Seadrill forbearance agreements extended until October 31

Seadrill (SDRLF) says it agrees to extend and renew existing forbearance agreements with certain creditors announced two weeks ago.The creditors agree not to exercise any voting rights or take other actions regarding certain events of default that may arise under the senior secured credit facility agreements until Oct. 31.Forbearance has not yet been agreed under the leasing agreements for the West Hercules, West Linus and West Taurus drilling rigs.Seadrill says it continues to evaluate capital structure proposals, and expects potential solutions "could lead to significant equitization of debt which is likely to result in minimal or no recovery for current shareholders.""Common equity is facing a wipeout. At best, shareholders will get some wildly out-of-the-money warrants," Vladimir Zernov wrote in an analysis of Seadrill published recently on Seeking Alpha.

For further details see:

Seadrill forbearance agreements extended until October 31