Seadrill Files for Bankruptcy in Bid to Shrink Debt Burden
- Chairman John Fredriksen spent 18 months chasing debt deal
- Company expects to emerge from Chapter 11 in 6 to 9 months
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Seadrill Ltd., the offshore driller controlled by billionaire John Fredriksen, filed for bankruptcy protection after working out a deal with almost all its senior lenders to inject $1 billion of new money into the company.
Under the proposal, lenders will extend the maturity on $5.7 billion in debt, with no amortization payments due until 2020. Should lower-ranking creditors join the proposal, $2.3 billion in unsecured bonds would be converted into a 15 percent stake in the company, Seadrill said in a statement.