USA - Seadrill Files for Voluntary Chapter 11 Protection
Offshore drilling contractor Seadrill Partners has filed voluntary petitions under Chapter 11 of the Bankruptcy Code to preserve value and to continue the operation and marketing its assets.
Seadrill said on Tuesday that it has been in negotiations with an ad hoc group of lenders under the company’s Term Loan B credit facility regarding a consensual reorganization of its balance sheet.
In consultation with the ad hoc group, Seadrill filed voluntary petitions under Chapter 11 for bankruptcy protection.
The company added that it would use the bankruptcy process to ensure that all customer, vendor, and employee obligations were met without interruption and complete a consensual restructuring of its debt.
It is worth reminding that Seadrill has been working with its senior creditors to provide an interim solution to the high cash outflow for debt service since the end of 2019. In June, the company moved to delist from NYSE and focus upon the Oslo Stock Exchange going forward.