SDRLF - Seadrill launches new rescue plan to cut $4.9B debt

MikeMareen/iStock Editorial via Getty Images Seadrill (SDRLF) takes a major step towards emerging from Chapter 11 bankruptcy after reaching agreements with most of its lenders to raise $350M in new financing and cut liabilities by more than $4.9B. Some of the lenders also agree to backstop a $300M a lien exit facility, and will be entitled to 16.75% of new equity in the newly constituted Seadrill. Under the reorganization plan, the senior secured lenders also will exchange $5.6B of existing debt for $750M of second lien, take back debt and 83% of the new equity. Current shareholders would retain 0.25% of the company under the plan, if approved. John Fredriksen's Hemen Holding, the largest shareholder in the company, has committed to fund a $50M unsecured bond loan, convertible into 5% of the new equity. Noble Corp. and a consortium led by Transocean reportedly are competing to buy Seadrill's assets.

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Seadrill launches new rescue plan to cut $4.9B debt