Seadrill announced that its Plan of Reorganization has been confirmed by the U.S. Bankruptcy Court for the Southern District of Texas. Earlier this month, the Plan received overwhelming support from the Company’s stakeholders.

Following the Court’s approval of the Plan, Seadrill is targeting an exit of Chapter 11 proceedings in approximately 60 days. This is subject to certain customary conditions, including certain antitrust approvals.

The Plan raises $350 million in new financing and reduces the Company’s existing liabilities by $4.9 billion, while leaving employee, customer, and trade claims unaffected. Existing shareholders will see their holding in the post emergence entity decrease to 0.25%.

Commenting, Stuart Jackson, Seadrill Chief Executive Officer, said: “Confirmation of the Plan by the Court is a watershed moment for Seadrill and one we should celebrate as we move into the final stages to emerge from Chapter 11. Achieving this milestone would not be possible without the collective efforts of our employees, customers, partners, suppliers, creditors and shareholders. The continued support from this broad Seadrill community is one of our greatest assets and will be critical to the success of our next chapter as we reinforce our position as a market leader.

“With emergence around the end of the year, we stand alongside our offshore drilling peers focused on safe and efficient delivery to our customers in an industry that continues to need to evolve. Seadrill’s strong brand will ensure we maintain a leadership position in future developments.”