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Seadrill moves to insulate Seadrill Partners from likely Chapter 11 restructure

Published 08/17/2017, 12:19 PM
Updated 08/17/2017, 12:19 PM
© Reuters.  Seadrill moves to insulate Seadrill Partners from likely Chapter 11 restructure
  • Seadrill (SDRL -5.6%) moves closer to declaring Chapter 11 bankruptcy, as it secures amendments to certain credit facilities to insulate its Seadrill Partners (SDLP +18%) subsidiary from SDRL's restructuring.
  • SDRL, weighed by more than $10B in debt, says it completed amendments to three secured credit facilities related to rigs purchased from SDRL by SDLP the company says will insulate SDLP "from events of default related to the company's likely use of Chapter 11 proceedings to implement its restructuring plan."
  • SDRL says its restructuring plan likely will require substantial impairment or bond conversion; as a result, the company expects shareholders likely will receive "minimal recovery" for their existing shares.
  • Now read: Seadrill Partners Successfully Insulates Itself From Its Parent's Impending Bankruptcy


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