Offshore drilling rig contractor Seadrill said on Monday it had successfully completed its reorganisation, emerging from a U.S. chapter 11 bankruptcy process launched last September, Reuters reported. The company, once the world’s largest offshore driller by the market capitalisation, was forced to seek protection from creditors when it was unable to repay its debts amassed during boom years to buy new rigs. When oil prices fell in 2014, oil companies cancelled or postponed exploration plans to save cash which reduced demand for offshore drilling rigs. Prices have partly recovered since hitting a low in January 2016, and demand for drilling rigs, especially in the North Sea, has increased, giving more hope for such firms as Seadrill. To reduce its debts, the company pushed forward maturities of $5.7 billion bank loans, equitised about $2.4 billion in unsecured bonds and $1 billion in obligations for newly built rigs. It also raised more than $1 billion in fresh capital by issuing $880 million in new secured bonds and $200 million in new equity under the plan approved on April 17. Read more.
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