Offshore drilling services provider Seadrill Ltd (SDRL.OL) said on Tuesday it had filed for Chapter 11 bankruptcy and entered into a restructuring agreement with bank lenders, bondholders and a consortium of investors.
The company said in a statement the agreement delivered $1.06 billion of new capital, comprising $860 million of secured notes and $200 million of equity, and addressed Seadrill’s liabilities, including funded debt and other obligations.
Seadrill said it had over $1 billion in cash at the time of the court filing in the Southern District of Texas and it did not require any debtor-in-possession financing.
As part of the Chapter 11 filing, the company sought “first day” motions that, when granted, would enable day-to-day operations to continue as usual.
Seadrill said it had ring-fenced its non-consolidated affiliates including Seadrill Partners Llc, Seamex Ltd, Archer Ltd and their respective subsidiaries from the company’s restructuring. These non-consolidated affiliates did not file Chapter 11 cases.
Houlihan Lokey Inc served as Seadrill’s financial advisor while Alvarez & Marsal served as its restructuring advisor.