19:45 – 20 Nov. | Updated 19:50 – 20 Nov.
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John Fredriksen-dominated Seadrill has entered into agreements with most of its creditors, which means that the creditors withhold and do not enforce their requirements for what the company is obliged to do under the loan agreements.
This is stated in a stock exchange announcement on Friday night.
The agreements entered into apply to the company’s priority mortgage-backed loans, as well as the leasing agreements for the ultra-deepwater drilling rig “West Hercules”, and the jack-up rigs “West Linus” and “West Taurus”.
The purpose is to give more time to the company and its owners to negotiate the terms of a restructuring, the company writes.
«The company continues to evaluate the proposals for a changed capital structure; Although no agreement has been reached at this time, it is expected that potential solutions will lead to a significant conversion of debt into shares, which will probably result in minimal or no recovery for current shareholders “, the report states.
However, the company has not entered into an agreement with either Danske Bank or lenders in a mortgage-backed loan. This means that the two lenders can declare default and initiate actions with a view to, for example, bankrupting the company.
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