Seadrill Partners LLC has announced that it has emerged from Chapter 11 after successfully completing its reorganization plan.
The plan equitized approximately $2.8 billion in funded debt obligations, leaving the company debt free on emergence, Seadrill Partners noted. The business outlined that it is well positioned to secure drilling contracts and invest in its high specification ultra deepwater, harsh environment, and tender rig fleet going forward.
As part of the plan, new management services agreements were entered into for the management of the company’s offshore drilling units and a transition services agreement was agreed to with the company’s prior manager that provides for a safe and efficient transition, Seadrill Partners highlighted. The company added that the plan has resolved all potential claims against the business alleged by related parties, secured, and unsecured creditors.
Existing equity interests in the company have now been canceled, released, and extinguished. Seadrill Partners has issued 20 million shares of new common stock, 31.8 percent of which is held by holders of super senior term loan claims against the company and certain of its Chapter 11 debtor affiliates, and 68.2 percent of which is held by holders of Term Loan B (TLB) secured claims against the company and certain of its Chapter 11 debtor affiliates.
In accordance with the Plan, a newly constituted board of directors was appointed, comprising Steven L. Newman (Chief Executive Officer/Director), Alan S. Bigman, John Bishop, Daniel C. Herz, and N. John Lancaster, Jr.
In December last year, Seadrill Partners LLC announced that it had been in negotiations with an ad hoc group of lenders under the company’s TLB credit facility regarding a consensual reorganization of the company’s balance sheet. The business noted that, in consultation with, and with the support of, the ad hoc group, it had filed voluntary petitions under Chapter 11 of the Bankruptcy Code “to preserve value and to continue the operation and marketing [of] its assets”.
In a company statement at the time, Seadrill Partners said it intended to use the bankruptcy process to ensure that all customer, vendor, and employee obligations were met without interruption and to complete a consensual restructuring of its debt.
Seadrill Partners is a limited liability company formed by Seadrill Limited (NYSE: SDRL) to own, operate, and acquire offshore drilling rigs.
To contact the author, email andreas.exarheas@rigzone.com
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