SDRL - Restructuring update
(Thomson Reuters ONE) -
Hamilton, Bermuda, January 31, 2017 - Seadrill Limited ("SDRL" or "the Company")
has filed a 6K today detailing the status of negotiations with its secured
lending banks, unsecured bondholders, and potential new money investors. Over
the past year we have had substantial dialogue with our secured lenders to amend
and extend c.USD8 billion in first lien secured debt. During the second half of
last year, we began to engage with potential new money investors, including
Hemen Holdings Ltd. In December 2016, we formally engaged with an ad hoc
committee of bondholders, and agreed that by January 31 2017 we would release
through a 6k filing agreed material non-public information disclosed to the ad
hoc committee of bondholders, including the Company's latest restructuring
proposal and the last proposal that the Company has received from the ad hoc
committee. Those materials are attached as exhibits to this release. Members of
the bondholder ad hoc committee have indicated they will consider re-restricting
at a future point to again try to work towards an agreement.
The key goals of the Company's restructuring continue to be building a bridge to
a recovery and achieving a sustainable capital structure. Based on these
considerations, the Company proposed that this be achieved by:
1. Extending bank maturities to mature in the period from 2021 to 2023, reducing
fixed amortization and amending financial covenants;
2. Extending the maturity of unsecured claims to mature in the period from 2025
to 2028; and
3. Raising at least $1.0 billion in new capital.
Discussions with the banks, potential new money investors, the ad hoc committee
of bondholders, and Hemen Holdings Ltd are continuing. The Company is targeting
reaching an agreement on a consensual, comprehensive restructuring prior to the
maturity of the West Eminence facility on April 30, 2017. Assuming we achieve
this target, we expect the implementation of an agreement to occur during the
second quarter of 2017. We are also actively preparing various contingency plans
in the event we do not reach a consensual agreement. While discussions with the
banks, potential new money investors, the advisors to the ad hoc committee of
bondholders and Hemen Holdings Ltd are continuing, the Company has not yet
reached an agreement amongst all counterparties. We expect that any
comprehensive agreement that would be based on raising significant new capital
is likely to result in significant dilution to current shareholders and
potential losses for other financial stakeholders.
Per Wullf, CEO and President of Seadrill Management Ltd. comments: "These
negotiations have proved to be more complex than we had originally anticipated.
Nevertheless, key stakeholders have demonstrated a clear desire to be part of a
solution and with the right structure and terms we believe there is significant
capital available to us. Seadrill is a great company with excellent people,
assets and customers and we look forward to concluding a transaction that
ensures Seadrill continues to be well positioned for the eventual recovery in
the industry."
FORWARD LOOKING STATEMENTS
This news release includes forward looking statements. Such statements are
generally not historical in nature, and specifically include statements about
the Company's plans, strategies, business prospects, changes and trends in its
business and the markets in which it operates. These statements are made based
upon management's current plans, expectations, assumptions and beliefs
concerning future events impacting the Company and therefore involve a number of
risks, uncertainties and assumptions that could cause actual results to differ
materially from those expressed or implied in the forward-looking statements,
which speak only as of the date of this news release. Consequently, no forward-
looking statement can be guaranteed. When considering these forward-looking
statements, you should keep in mind the risks described from time to time in the
Company's filings with the Securities and Exchange Commission, including its
Annual Report on Form 20-F (File No. 001-34667). The Company undertakes no
obligation to update any forward looking statements to reflect events or
circumstances after the date on which such statement is made or to reflect the
occurrence of unanticipated events. New factors emerge from time to time, and it
is not possible for the Company to predict all of these factors. Further, the
Company cannot assess the impact of each such factor on its business or the
extent to which any factor, or combination of factors, may cause actual results
to be materially different from those contained in any forward looking
statement.
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Company Presentation to Bondholders:
http://hugin.info/135817/R/2074580/779953.pdf
Bondholders Proposal:
http://hugin.info/135817/R/2074580/779952.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Seadrill Limited via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 31.01.2017 - 07:01 Uhr
Sprache: Deutsch
News-ID 520806
Anzahl Zeichen: 5899
contact information:
Town:
Hamilton
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 468 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"SDRL - Restructuring update"
steht unter der journalistisch-redaktionellen Verantwortung von
Seadrill Limited (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
