Seadrill Partners to Shop Assets in Bankruptcy
01 December 2020 - 11:40PM
Dow Jones News
By Jonathan Randles
An affiliate of offshore contract driller Seadrill Ltd. said
Tuesday it will shop its assets while in bankruptcy, the second
time in just over three years parts of its business have tipped
into chapter 11 as the oil-and-gas industry faces continued
pressure during the pandemic.
Seadrill Partners LLC and several related corporate entities
filed for chapter 11 protection in the U.S. Bankruptcy Court in
Houston listing assets of nearly $4.58 billion and about $3.12
billion in debt. London-based Seadrill Ltd., which isn't part of
Tuesday's chapter 11 filings, owns 35% of Seadrill Partners,
according to court papers and a quarterly report from June.
Seadrill Partners follows several other offshore rig operators
that have filed for bankruptcy in recent months, including Pacific
Drilling SA, which is currently making a second trip through
chapter 11 after emerging in 2018.
Seadrill Ltd., founded by Norwegian shipping magnate John
Fredriksen, filed for chapter 11 in September 2017, burdened at the
time by substantial debt as it navigated a prolonged decline in
commodities prices. The company emerged from chapter 11 the
following year. In June, Seadrill Ltd. said it wrote off its stake
in Seadrill Partners, which owns and operates a fleet of
drillships, semi-submersible rigs and tender rigs.
Seadrill Partners said it filed for chapter 11 with the support
of a group of lenders with which it has been negotiating a
consensual reorganization of its balance sheet. The bankruptcy will
preserve the value of Seadrill Partners' business while it
continues to operate and market its assets, the company said.
Seadrill Partners said in a press release it intends to complete
a consensual restructuring of its debt and ensure "that all
customer, vendor and employee obligations are met without
interruption."
Seadrill Ltd. didn't immediately return a message seeking
comment.
Seadrill Partners has retained law firm Jackson Walker LLP to
represent the company in chapter 11. It has also hired Evercore
Inc. as financial adviser and M-III Partners LP as restructuring
adviser.
U.S. Bankruptcy Judge David R. Jones has been assigned to the
chapter 11 case, number 20-35740.
Write to Jonathan Randles at Jonathan.Randles@wsj.com
(END) Dow Jones Newswires
December 01, 2020 18:25 ET (23:25 GMT)
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