Offshore driller Seadrill Ltd. on Tuesday obtained court approval for its reorganization plan, clearing the way for it to emerge from bankruptcy, Reuters reported. U.S. Bankruptcy Judge David Jones in Houston signed off on the plan during a virtual hearing. Under the plan, creditors will exchange $4.9 billion in debt for equity in the company. Seadrill will also raise $350 million in new financing. Seadrill filed its second bankruptcy since 2017 in February with $5.6 billion in secured debt, blaming its second trip to chapter 11 on the sustained downturn in the oil and gas market and economic impact of the COVID-19 pandemic. The company expects to exit bankruptcy in about 60 days.
