(Courtesy: SDLP: The drillship West Auriga)
Investment Thesis
Seadrill Partners LLC (SDLP) has been slowly going down since my preceding article, where I was pushing for a short position. Unfortunately, for long-term shareholders, I have been right, and the stock collapsed due to a potential restructuring under Chapter 11 within the next 12 months.
Seadrill Partners managed in extremis to insulate itself temporarily against the adverse ripple effects of Seadrill Ltd.'s (NYSE: SDRL) debt restructuring, which was forced to file for Chapter 11 due to a massive debt load.
Refinancing the debt