Seadrill Stakeholders Vote to Accept Reorganization Plan

seadrill

Seadrill has announced the voting results for its plan of reorganisation. All voting classes of stakeholders accepted the Plan, including all 12 credit facilities and general unsecured creditors and shareholders.  Over 96% of secured lenders voted, and over 88% of secured lenders accepted the Plan.

The following is a summary of the results by class:

Plan Class

Name

Percentage Accepting(By Dollar Amount)[1]

4A

AOD Credit Agreement Claims

100%[2]

4B

$450MM Eminence Credit Agreement Claims

100%

4C

NADL Credit Agreement Claims

86.89%

4D

$1.35B Credit Agreement Claims

93.70%

4E

$950MM Credit Agreement Claims

100%

4F

ECA Credit Agreement Claims

100%

4G

$1.5B Credit Agreement Claims

100%

4H

$1.75B Credit Agreement Claims

71.81%

4I

$450MM Nordea Credit Agreement Claims

100%

4J

$300MM Credit Agreement Claims

100%

4K

$440MM Credit Agreement Claims

100%

4L

$400MM Credit Agreement Claims

100%

6

General Unsecured Claims

91.68%

9

Equity Interests in Seadrill Limited

85.72%[3]

[1] Reflects percentage accepting of those voting, by dollar amount of claims, except where otherwise noted. Each
voting class also accepted the Plan based on number of creditors voting.

[2] AOD Credit Agreement Claims were unimpaired and accordingly deemed to accept the Plan.

[3] Reflects percentage accepting of those voting by number of shares.  As a result of all voting classes of creditors
accepting the Plan, existing shareholders are contemplated to receive a recovery of 0.25% of the new equity, subject to dilution.

Based on these results, Seadrill is on track to have its Plan confirmed at the confirmation hearing scheduled for 26 October. If the Plan is confirmed by the Court on that date, Seadrill is targeting exiting chapter 11 proceedings approximately 60 days thereafter, subject to certain customary conditions, including certain antitrust approvals.

Grant Creed, CFO, commented: “The near-unanimous acceptance of the Plan by our lenders is another important step towards Seadrill’s emergence from chapter 11. This has been a long journey to deliver broad support across our creditor constituency, but I am confident that our eventual emergence will place us back at the heart of a sector collectively going through significant re-adjustment and reinforce our position as a market leader.”

The deadline for creditors to have submitted votes on the Plan was 7 October. The results are subject to ongoing review by Prime Clerk, Seadrill’s balloting agent, and remain subject to change.  Prime Clerk will file a report certifying the final voting results to the United States Bankruptcy Court for the Southern District of Texas (the “Court”) by 22 October.

Shareholders are reminded that under the Plan of Reorganisation their holding in the post emergence entity will drop to 0.25 percent.

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