Monday, January 30, 2023
HomeFinance & EconomyBuyers circle Seadrill as it plots exit from bankruptcy


To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Buyers circle Seadrill as it plots exit from bankruptcy

Noble Corp and a consortium that includes Transocean Ltd and Dolphin Drilling are competing to acquire the assets of Seadrill Ltd, the bankrupt offshore oil driller controlled by Norwegian-born tycoon John Fredriksen, people familiar with the matter said on Tuesday.

Seadrill is trying to emerge from its second U.S. Chapter 11 bankruptcy in four years: like many in the industry, it expanded its drilling rigs too aggressively in the mid-2010s to withstand a subsequent plunge in energy prices and rig hire rates. It is negotiating a deal to restructure its more than $7 billion debt pile in exchange for handing company control to its creditors.

U.S. Chapter 11 bankruptcy proceedings temporarily shield companies from creditor claims, allowing firms to maintain operations while providing time to agree on debt restructuring plans, which must in turn be approved by a court.

Any acquisition offer would have to provide more value to the creditors involved than the restructuring plan under negotiation. For buyers, acting now means they could scoop up all Seadrill’s assets without taking on any of its debt pile.

The consortium comprising Transocean, Dolphin Drilling and a third party, whose identity could not be learned, lodged a bid for Seadrill in early-July, the sources said.

The offer consists of cash, shares in Transocean and an agreement to take on some of Seadrill’s existing debt, one of the sources said. Its value could not be learned.

The bid is still under consideration by the company, the source added.

Noble submitted a bid in May for the company’s asset base, according to a July 1 bankruptcy court filing. While the document shows the offer was discussed by the company and its advisers, it did not detail the result of those considerations.

Noble, which itself emerged from bankruptcy in February, remains interested in pursuing that bid, one of the sources said.

In a statement to Reuters, Seadrill said it recognized the need for consolidation within the industry and would play an active role, once its restructuring was completed later this year.

“Seadrill remains focused on the restructuring of our balance sheet,” the statement went on, adding the company was working towards filing its Plan Support Agreement, with the backing of its secured lenders. The agreement legally binds signatories to consider the formal restructuring plan.

Transocean declined comment. Dolphin Drilling and Noble did not respond to comment requests.

Seadrill operates 43 rigs, which are hired by energy companies to drill for oil in both shallow and deep water across five continents, according to the company’s website. Among its clients are Equinor, Petrobras and ConocoPhillips.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

John Fredriksen Increases Stake in Euronav

Norwegian billionaire John Fredriksen has once again increased his stake in Belgian tanker company Euronav in wake of Frontline’s termination of its combination agreement...

First Citizens Bank Arranges $44.2 Million of Debt Financing for Navios Partners

First Citizens Bank announced that its Maritime Finance group, part of the CIT division, served as sole lead arranger on $44.2 million in debt...

Eagle Bulk Appoints Kate Blankenship to Board of Directors

Eagle Bulk Shipping Inc., one of the world’s largest owner-operators within the midsize drybulk vessel segment, announced that it has appointed A. Kate Blankenship...

Golar LNG: Unwind of majority of TTF hedges of 2023 and 2024 Dutch Title Transfer Facility exposure

Golar LNG Limited (“Golar”) announced that it has unwound the majority of its swap arrangements for its Dutch Title Transfer Facility (“TTF”) linked production...

Cyprus shipping making waves – report

Cyprus shipping, the steady driver of the economy, is sailing for better times, having...

Baltic index hits fresh multi-year lows on capesize dip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index falls for seventh session on lower capesize demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index hits fresh 2-1/2-year low as larger vessel rates slip

The Baltic Exchange’s main sea freight index extended losses to a sixth straight session...

Baltic index down for fifth day on lower vessel rates

The Baltic Exchange’s main sea freight index fell for the fifth straight session on...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...

SC Ports handles nearly 3 million TEUs in record 2022

South Carolina Ports had a record 2022 with the most containers ever handled at the Port of Charleston. SC Ports moved nearly 2.8 million TEUs...

January oil loadings from Russia’s Baltic ports set to jump 50% vs Dec

Urals and KEBCO crude oil loadings from Russia’s Baltic ports of Primorsk and Ust-Luga in January are set to rise by 50% from December...