Offshore drilling rig contractor Seadrill’s ongoing attempt to restructure its massive debt could leave current shareholders with minimal or no ownership at all, the Oslo-listed company said today, Reuters reported. Demand for exploration and drilling has fallen further during the COVID-19 pandemic as oil firms seek to preserve cash, idling more rigs and leading to additional overcapacity among companies serving the industry. Seadrill, controlled by Norwegian-born tycoon John Fredriksen, said that it has failed to convince its 43 lenders to adjust the terms of its $5.7 billion bank debt. “As a consequence, we did not proceed with the bank consent and have retained financial and legal advisors to prepare for a comprehensive restructuring of our balance sheet, such a restructuring may involve the use of a court-supervised process,” it added. Luxembourg and Houston-based Pacific Drilling has also said that it is considering chapter 11 as an option to address its long-term liquidity. Seadrill, which itself emerged from chapter 11 bankruptcy court proceedings in 2018, has seen its shares drop more than 98 percent in the last two years.
