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.
Hertz Global Holdings Inc., the car rental company that exited bankruptcy in June and has been trading over the counter, is planning to list its shares on Nasdaq, Bloomberg News reported. The company in a filing Friday listed the size of the offering as $100 million, a placeholder that will likely change. Some of its shareholders, who aren’t identified in the filing with the U.S. Securities and Exchange Commission, plan to sell shares as part of the offering. The company in a filing Friday listed the size of the offering as $100 million, a placeholder that will likely change. Some of its shareholders, who aren’t identified in the filing with the U.S. Securities and Exchange Commission, plan to sell shares as part of the offering. Hit hard by the coronavirus pandemic, the company filed for chapter 11 and emerged after Knighthead Capital Management, Certares Opportunities and Apollo Capital Management bought the business in a $6 billion deal. The group owns 42% of Hertz, the filing shows. Hertz’s shares, which have been trading on the Over-the-Counter Bulletin Board as HTZZ, had become a favorite of investors chatting on Reddit message boards. The company, based in Estero, Florida, reported $21 million in net income on a revenue of $3.2 billion during the first half of the year. That compared with a $1.2 billion net loss on $2.8 billion in revenue for the same period a year ago. Read more.
Did you miss Thursday's ABI Strategies and Perspectives program "The Anatomy of the Hertz Chapter 11" that featured the industry leaders who facilitated the Hertz chapter 11? Watch a replay here!
