Seadrill Ltd, the indebted oil rig firm controlled by Norwegian billionaire John Fredriksen, has agreed to a restructuring that almost wipes out existing shareholders after filing for chapter 11 protection, Reuters reported yesterday. A deal with a consortium of investors, as well as bank lenders and many of its bondholders, will bring in more than $1 billion in fresh funding and aims to allow the firm to maintain its fleet of drilling units and pay creditors and staff. However, its shareholders will see their stakes heavily diluted. “Holders of Seadrill common stock will receive approximately 2 percent of the post-restructured equity,” Seadrill said yesterday. More than 97 percent of its secured bank lenders, including DNB, Danske Bank and Nordea, supported the deal, as did approximately 40 percent of bondholders and a consortium of investors led by Fredriksen’s Hemen Holding Ltd. The banks agreed to defer maturities of secured credit facilities, totaling $5.7 billion, by approximately five years with no amortization payments until 2020, Seadrill said.
