Seadrill New Finance Limited announces extension of forbearance agreement
Seadrill Limited (“Seadrill” or the “Company”) (OSE:SDRL, OTCPK:SDRLF) announces that Seadrill New Finance Limited (the “Issuer”), a subsidiary of the Company, has agreed to further extend the existing forbearance agreement announced on 19 April 2021, and extended on 17 May 2021, 27 May 2021, 3 June 2021 and 18 June 2021, with respect to the 12.0% senior secured notes due 2025 (the “Notes”) with certain holders of the Notes (the “Note Holders”).
Pursuant to the forbearance agreement, as extended, the consenting Note Holders have agreed not to exercise any enforcement rights with respect to the Issuer and any subsidiary of the Issuer which is an obligor under the Notes to, or otherwise take actions in respect of, certain events of default that may arise under the Notes as a result of, amongst other things, the Issuer not making the semi-annual 4% cash interest payment due to the senior secured noteholders on 15 January 2021 in respect of their Notes and the filing of Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas by the Company and certain of its consolidated subsidiaries (excluding the Issuer and its consolidated subsidiaries) until and including the earlier of 2 July 2021 and any termination of the forbearance agreement.
The purpose of the forbearance agreement is to allow the Issuer and its stakeholders more time to negotiate the heads of terms of a comprehensive restructuring of its balance sheet. Such a restructuring may involve the use of a court-supervised process.
About Seadrill
Seadrill is a leading offshore drilling contractor utilizing advanced technology to unlock oil and gas resources for clients across harsh and benign locations across the globe. Seadrill’s high quality, technologically advanced fleet spans all asset classes allowing its experienced crews to conduct its operations from shallow to ultra-deep-water environments. The company operates 43 rigs, which includes drillships, jack-ups and semi-submersibles.
Seadrill is listed on the Oslo Børs and OTCPK.