A group of Seadrill’s creditors have agreed to let the offshore drilling rig operator suspend interest payments this month as part of an ongoing effort to restructure its $7.3 billion debt, the Oslo-listed company said today, Reuters reported. Seadrill, which has so far failed to convince its 43 bank lenders to permanently adjust the terms of its loans, reiterated earlier warnings that a debt restructuring could leave current shareholders with minimal or no ownership at all. The forbearance agreement lasts until Sept. 29 but could be extended. The deal announced on Wednesday covers senior and secured credit facilities, notes and guarantees, but not yet the leasing agreements for three of its rigs, Seadrill said. By postponing payments on its bank debt, Seadrill is at risk of cross-defaulting on those leasing deals, the company said. 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. A new debt restructuring could again involve a court-supervised process, the company said, while adding that five legal, investment banking and management consulting firms had been appointed as advisors.
