Seadrill Ltd. units file Chapter 11; forbearance agreement terminated

By Sarah Lizee

Olympia, Wash., Feb. 8 – Seadrill Ltd. said that Chapter 11 cases have been filed in the U.S. Bankruptcy Court for the Southern District of Texas in respect of its wholly owned subsidiaries Seadrill GCC Operations Ltd., Asia Offshore Drilling Ltd., Asia Offshore Rig 1 Ltd., Asia Offshore Rig 2 Ltd. and Asia Offshore Rig 3 Ltd.

The Chapter 11 cases were filed as a protective measure to support Seadrill's broader comprehensive financial restructuring and will in no way affect the safe and efficient operation of the offshore drilling units, according to a press release.

The company said it will request authority to pay its key trade creditors and employee wages and benefits without change or interruption and expects it will pay all suppliers and vendors in full under normal terms for goods and services provided during the Chapter 11 cases.

As a consequence of the Chapter 11 filings, the forbearance agreement announced by the company on Feb. 3 in respect of nine out of the group's 12 senior secured credit facility agreements has terminated.

Seadrill GCC Operations listed $100 million to $500 million in both assets and liabilities in its petition.

No creditors were listed with unsecured claims of $1 million or more.

London-based offshore drilling company Seadrill Ltd. filed Chapter 11 bankruptcy on Sept. 12, 2017 and emerged on July 2, 2018. Its affiliate Seadrill Partners LLC filed Chapter 11 bankruptcy on Dec. 1. The case number for Seadrill GCC Operations is 21-30391.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.