Offshore drilling contractor Seadrill has taken another step towards emerging from chapter 11 bankruptcy by agreeing with stakeholders to raise $350 million and reduce liabilities by about $5 billion, Upstream reported. Seadrill said that it has entered into a plan support agreement with certain of its senior secured lenders holding about 57.8% of the company's senior secured loans as well as a backstop commitment letter entered into with certain of its consenting lenders.The agreements contemplate a plan of reorganization that will raise $350 million in new financing and reduce the company's liabilities by over $4.9 billion, added Seadrill. Certain of the senior secured lenders have also agreed to backstop a first lien exit facility totaling $300 million. The lenders participating in (and backstopping) the new-money facility will collectively receive 16.75% of new equity in the newly constituted Seadrill, subject to dilution.
