Seadrill’s reorganization plan gets full support from creditors
John Fredriksen’s offshore drilling company Seadrill has obtained full support from its creditors and shareholders for the reorganization plan aimed at reducing the driller’s massive debt.
Seadrill Limited and its 85 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code on September 12, 2017.
Meanwhile, Seadrill continued all normal day-to-day operations and continued serving customers without interruption. The court gave the company authority to continue to pay employee wages and benefits without interruption, continue to utilize its cash management system and continue to pay all suppliers and vendors in full under normal terms.
On Monday, April 9 the company announced the voting results for its Chapter 11 plan of reorganization filed with the U.S. Bankruptcy Court for the Southern District of Texas. The near unanimous support from the voting ballots reflects the overwhelming support for the company’s plan and reorganization efforts, Seadrill said on Monday.
Of the 530 ballots cast by creditors voting on the plan, 529 or 99.8% of all voting creditors aggregated across all creditors classes, excluding ballots cast by holders of interests, voted to accept the plan.
Shareholders voted approximately 29,000,000 shares in the company, with 24,983,115 or 86% of shares voted to accept the plan. The company noted that the plan received approval from every single class of creditors and holders of interests entitled to vote, far exceeding the required thresholds.
The voting results demonstrate the broad-based support by creditors and shareholders of the company’s reorganization transaction, which provides more than $1.08 billion of new capital, defers all secured credit facilities’ maturities by approximately five years, and provides significant covenant relief.
A confirmation hearing on the plan is scheduled to begin on April 17, 2018.