Tuesday, October 10, 2017

Seadrill News

  • Seadrill Ltd's official committee of unsecured creditors said it has hired an investment banker and is looking into transactions made by the global offshore drilling contractor before it filed for U.S. Chapter 11 bankruptcy protection in Texas last month. "We are looking at numerous pre-petition transactions that were described at least in part" in Chapter 11 filings by Seadrill on Sept. 12, the committee's lawyer, Douglas Mannal, of Kramer Levin Naftalis & Frankel LLP said at a hearing in Houston on Tuesday. [link]
  • Seadrill Shareholders Will Get a Day in Court to Object to Restructuring [WSJ]


Anonymous said...

Do you know when SDRL is expected to exit bankruptcy?

The most I could find is in "coming months" but no concrete date.

CP said...

Look at the docket: https://cases.primeclerk.com/seadrill/Home-DocketInfo

I haven't been following the case, but the debtors recently asked to have their exclusivity period extended to March 2019.

Anonymous said...

"Reorganization plan of offshore driller Seadrill has been confirmed by the U.S. Bankruptcy Court for the Southern District of Texas.
The confirmation of the reorganization plan by the court comes on the back of support by Seadrill’s creditors and shareholders obtained earlier this month.
Seadrill reiterated on Wednesday that the plan has near unanimous support from the company’s stakeholders and emergence from Chapter 11 is expected within the next 60-90 days."


Existing SDRL shareholders get 1.8% of newco equity. Valuation of the newco with stock up here is a head scratcher.

Anonymous said...

Buy the bonds; short the equity

Essentially getting the equity for ~$.05 with the bonds priced at .13 and the company exiting bk by ~July 18th at the latest.

Anonymous said...

SDRL - Seadrill Announces Timeline for Expected Emergence from Chapter 11

".. it anticipates emerging from the chapter 11 process in the first half of July 2018."

CP said...

Looks like shares ended up worth 10 cents. Maybe less if the stock drops from here.