Conyers Dill & Pearman is advising Bermuda company, Seadrill Limited (“Seadrill” or the “Company”) in connection with its comprehensive restructuring plan, which will raise US$1.06 billion of new capital, comprised of US$860 million of secured notes and US$200 million of equity.
Seadrill entered into a restructuring agreement with more than 97% of its secured bank lenders, approximately 40% of its bondholders and a consortium of investors led by its largest shareholder, Hemen Holding Ltd., on 12 September 2017.
In order to implement the restructuring agreement, Seadrill filed prearranged chapter 11 cases in the Southern District of Texas, together with the agreed restructuring plan. This was announced on 13 September 2017. On that day, application was also made in Bermuda for the appointment of EY partners Alan Bloom, Simon Edel and Roy Bailey as joint provisional liquidators of Seadrill and two of its Bermuda incorporated affiliates, North Atlantic Drilling Limited and Sevan Drilling Limited.
The restructuring plan has been in development for over a year and seeks to maintain the continued operation of the Company’s business. Secured lending banks have agreed to defer maturity of secured bank debt by approximately five years with no amortization payments until 2020 and have also agreed to significant covenant relief.
Seadrill Limited is a leading deep-water offshore drilling contractor providing drilling services to the oil and gas industry, with a primary focus on drill ships, semi-submersible rigs and jack-up rigs.
Conyers’ Corporate team on this matter consists of David Cooke, Jennifer Panchaud, David Stubbs and Sarah Lusher. The Restructuring team includes Robin Mayor and Narinder Hargun, all of the Bermuda office.
Conyers is working alongside Kirkland & Ellis LLP as US legal counsel, Houlihan Lokey, Inc. as financial advisor, Alvarez & Marsal as restructuring advisor, and Slaughter and May as corporate counsel. Morgan Stanley served as co-financial advisor during the negotiation of the restructuring agreement and Advokatfirmaet Thommessen AS as Norwegian counsel.