Offshore drilling services company Seadrill Ltd. has made "significant progress" with its banks on the terms of a debt restructuring plan that will likely require filing for bankruptcy in the U.S. or U.K., Dow Jones Newswires reported yesterday. Seadrill said yesterday that it is in advanced talks with secured lenders and third-party investors on the terms of a "comprehensive recapitalization." Absent an additional extension from creditors, Seadrill faces a July 31 deadline for implementing a restructuring plan. "While discussions with our secured lenders and certain investors have advanced significantly, a number of important terms continue to be negotiated and no assurance can be given that an agreement will be reached," Seadrill said. A restructuring will likely involve converting Seadrill's bond debt into equity. Any recovery for existing shareholders would be minimal at best, the company said.
