tag:blogger.com,1999:blog-1527840491496268397.post6317211067465791031..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: Seadrill Announces Comprehensive Restructuring PlanUnknownnoreply@blogger.comBlogger10125tag:blogger.com,1999:blog-1527840491496268397.post-78703726401097603552017-09-20T10:37:22.406-07:002017-09-20T10:37:22.406-07:00Stock on fire today with heavy volume. Stock on fire today with heavy volume. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-68590857710972492362017-09-16T13:10:50.175-07:002017-09-16T13:10:50.175-07:00Seadrill Creditor Group is Said to Organize to Opp...<i>Seadrill Creditor Group is Said to Organize to Oppose Debt Plan<br />Bondholders are outside of ad hoc group of creditors who support plan, said the people, who asked not to be named because the discussions are private<br />Group is looking to hire financial and legal advisers<br />Without participation in new secured debt, unsecured claims have an estimated recovery of ~6%</i>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-50384446359201008032017-09-14T09:58:31.624-07:002017-09-14T09:58:31.624-07:00"John Fredriksen Chucks His Seadrill Bond Cre...<b>"John Fredriksen Chucks His Seadrill Bond Crew Overboard"</b><br /><br /><i><br />A separate $200 million equity injection hints at what the new investors think this equity might be worth. This is for 24 percent of Seadrill. Suppose this cash call was priced at a 60 percent discount -- consistent with the distressed state of affairs -- then 100 percent of the equity would be worth $2.1 billion.<br /><br />Now consider the sorry holders of $2.3 billion of bonds. The restructuring plan torches their securities and gives them a 14 percent equity stake, worth about $300 million on the above valuation. There's a painful gulf there. Less than half of bondholders have agreed to the deal. It's not clear what the rest think at this stage.<br /><br />The remaining equity holders keep the last 2 percent of the company. Bondholders will be livid shareholders get anything at all.</i>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-91403275645865014692017-09-13T16:48:52.187-07:002017-09-13T16:48:52.187-07:00CreditSights analyst Roger King did the math and r...CreditSights analyst Roger King did the math and reports late Wednesday that the recovery rate to bondholders in the bankruptcy plan is just 4.7%. He writes:<br /><br />$2,297 million unsecured bonds and $280 million estimated derivative contract claims share 15% new equity, and $200 million cash buys 25% new equity for an $800 million "market cap".<br /><br />http://www.barrons.com/articles/seadrill-files-for-bankruptcy-kicking-up-high-yield-default-rate-1505314775?mod=yahoobarrons&ru=yahoo&yptr=yahooAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-92035007291399413932017-09-13T08:59:41.431-07:002017-09-13T08:59:41.431-07:00Presentation: https://www.sec.gov/Archives/edgar/d...Presentation: https://www.sec.gov/Archives/edgar/data/1351413/000119312517283179/d451092dex101.htm<br /><br />RSA: https://www.sec.gov/Archives/edgar/data/1351413/000119312517283179/d451092dex102.htmAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-65389564683949810742017-09-13T08:48:39.059-07:002017-09-13T08:48:39.059-07:00Current shareholders may end up with as little as ...<i>Current shareholders may end up with as little as 3 to 4 cents a share, while unsecured bondholders may see a direct recovery for unsecured claims of about 6 percent if they don’t participate in new secured debt, analysts at Clarksons Platou Securities AS wrote in a note.<br /><br />“We see significant risk of the final words not being said yet and the Chapter 11 process might be a long and painful process,” the analysts said.</i><br /><br />https://www.bloomberg.com/news/articles/2017-09-12/seadrill-files-bankruptcy-to-shrink-offshore-driller-s-debt-loadAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-61507501166844303372017-09-12T20:03:24.429-07:002017-09-12T20:03:24.429-07:00Equity Extinguishment. Under the Restructuring Sup...<i>Equity Extinguishment. Under the Restructuring Support Agreement, so long as<br />holders of unsecured claims at Seadrill Limited vote as a class to accept the Debtors’ chapter 11 plan, holders of existing equity interests in Seadrill Limited will receive their pro rata share of 2 percent of the new equity in reorganized Seadrill Limited.</i>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-30846990792620214002017-09-12T19:55:47.921-07:002017-09-12T19:55:47.921-07:00The entities putting in the additional capital are...The entities putting in the additional capital are the ones who own the 40% of the unsecureds!<br /><br /><i>The proposal subsequently developed into a $1.06 billion commitment (the “Capital Commitment”) backed not only by Hemen and Centerbridge, but also by a syndicate of additional investors (the “Syndication Parties,” together with Hemen and Centerbridge, the “Commitment Parties”). The Syndication Parties hold approximately 30 percent of the Debtors’ approximately $2.3 billion in outstanding unsecured bonds (the “Unsecured Bonds”). The Commitment Parties (i.e., including Hemen and Centerbridge) hold approximately 40 percent of the Unsecured Bonds. The Commitment Parties and the Bank Lenders agree that a substantial capital injection is key to a successful restructuring.</i>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-70117325975584194642017-09-12T16:40:24.238-07:002017-09-12T16:40:24.238-07:00This could be a LONG, drawn out battle with equity...This could be a LONG, drawn out battle with equity moving all over the place. A lot of people want to cover their equity short because of this. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-76987397135136463472017-09-12T16:09:10.696-07:002017-09-12T16:09:10.696-07:00Only 40% bondholder support is weak...Only 40% bondholder support is weak...CPhttps://www.blogger.com/profile/12701174164478027499noreply@blogger.com