Seadrill Warns of 'Likely' Bankruptcy Filing in U.S. or U.K.

By Patrick Fitzgerald 

Offshore drilling services company Seadrill Ltd. said Tuesday it is planning a comprehensive debt restructuring that will likely include a bankruptcy filing in the U.S. or the U.K.

"We expect the implementation of a comprehensive restructuring plan will likely involve schemes of arrangement or chapter 11 proceedings, and we are preparing accordingly," the Bermuda-based company said in statement.

A scheme of arrangement is a U.K. court-supervised debt-restructuring process akin to a chapter 11 reorganization in the U.S.

The publicly traded Seadrill is controlled by shipping magnate John Fredriksen. It has been in talks with bondholders and lenders over restructuring more than $10 billion in debt.

Seadrill also said it reached a deal with its banks to extend several key dates tied to its restructuring. Those extensions include pushing out the deadline to implement a restructuring plan to July 31 from the end of this month as well as extending the maturity dates until August and September on $2.85 billion in loans

Seadrill said its business operations remain unaffected by these restructuring efforts and the company will continue to meet its ongoing customer and business obligations.

The company's stock closed at $1.67 a share Monday.

Write to Patrick Fitzgerald at [e-mail]

(END) Dow Jones Newswires

April 04, 2017 09:49 ET (13:49 GMT)

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