{"id":25588,"date":"2017-09-13T11:25:09","date_gmt":"2017-09-13T16:25:09","guid":{"rendered":"http:\/\/olduvai.ca\/?p=25588"},"modified":"2017-09-13T11:25:09","modified_gmt":"2017-09-13T16:25:09","slug":"offshore-drilling-giant-seadrill-files-for-bankruptcy","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=25588","title":{"rendered":"Offshore Drilling Giant Seadrill Files For Bankruptcy"},"content":{"rendered":"

Offshore Drilling Giant Seadrill Files For Bankruptcy<\/a><\/h3>\n
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Seadrill Ltd., the London-based offshore driller controlled by billionaire Norwegian shipping magnate John Fredriksen, filed bankruptcy protection in the Southern District of Texas after working out a deal with most of its senior lenders to inject $1 billion of new money into the company pursuant to a pre-arranged plan of reorganization.\u00a0 The filing was largely expected and came just a couple of days before the company’s $843 million 5.625% Notes of 2017 came due.<\/p>\n

According to Bloomberg<\/a>, Fredriksen spent more than 18 months trying to strike an agreement with creditors to restructure the industry\u2019s biggest debt-load after crude\u2019s collapse curbed demand for Seadrill\u2019s services.\u00a0 Daily leases for the company\u2019s rigs, which once commanded up to $800,000, have dropped to around $200,000 as cheap oil from U.S. shale drilling continues to flood the market.<\/p>\n

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\u201cThe deal gives us a great liquidity cushion,\u201d allowing Seadrill to survive the \u201cmother of all downturns,\u201d<\/strong> Chief Executive Officer Anton Dibowitz said by phone. The new capital is \u201cunderpinned\u201d by top shareholder Hemen Holding Ltd. and more than 40 percent of bondholders support the plan along with 97 percent of Seadrill\u2019s secured bank lenders, he said. Dibowitz expects more bondholders to sign up to the deal.<\/p>\n<\/blockquote>\n

Bondholders are currently predicting their ultimate recovery is worth about 25 cents on the dollar as of today.<\/p>\n

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Of course, Seadrill is just the latest bankruptcy filing in an industry that has been devastated by persistently weak commodity prices.<\/p>\n

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In late July, Ocean Rig UDW Inc. filed for bankruptcy protection in the U.S. Hercules Offshore Inc., GulfMark Offshore Inc., Toisa Ltd. and Vantage Drilling Co. have also spent time in bankruptcy court since oil and gas prices cratered.<\/p>\n

Paragon Offshore PLC emerged from Chapter 11 in August but was forced back into bankruptcy after it was unable to transfer two rigs to its reorganized entity. Its successor, Paragon Offshore Ltd., isn\u2019t under bankruptcy protection and was unaffected by Paragon Offshore PLC\u2019s new filing.<\/p>\n<\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"

Offshore Drilling Giant Seadrill Files For Bankruptcy Seadrill Ltd., the London-based offshore driller controlled by billionaire Norwegian shipping magnate John Fredriksen, filed bankruptcy protection in the Southern District of Texas after working out a deal with most of its senior lenders to inject $1 billion of new money into the company pursuant to a pre-arranged […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[15983,1361,1449,4318],"class_list":["post-25588","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-anton-dibowitz","tag-bankruptcy","tag-seadrill","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25588"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25588\/revisions"}],"predecessor-version":[{"id":25589,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/25588\/revisions\/25589"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}