Image: The Jack-up West Castor (Courtesy Seadrill)
Investment Thesis
It is still fresh enough to remind all my readers that the new Seadrill Ltd. (SDRL) emerged from Chapter 11 bankruptcy on July 2, 2018. The issue was that the company was buried under a huge debt load, and the idea was to restructure it to be able to better survive a challenging market environment with decreasing daily rates, smaller drilling contracts, and vanishing cash flow.
Unfortunately, the long-term shareholders lost nearly everything in the process, albeit they were still able to get a