Seadrill proposes debt write off of $4.8 billion PUBLISHED BY
Seadrill Ltd., a deepwater drilling contracting company, owned by billionaire
John Fredriksen, said it is ready to write off a debt of over $4.8 billion, giving lenders a 99 percent stake in the company, according to
Finansavisen.
The debt write-off proposal was presented to the US bankruptcy court in Texas ahead of the Easter holidays. The offer means that 99 percent of the ownership of Seadrill will pass on the lenders with just 1 percent left with the current shareholders.
According to Finansavisen, the proposed write-off will help Seadrill cut its debt by more than 86.5% to $750 million.
KUALA LUMPUR (Feb 9): While higher Brent crude prices have fanned interest in oil and gas (O&G) counters listed on Bursa Malaysia, fund managers and heads of research believe not every company is set to benefit immediately from the higher prices.
Areca Capital Sdn Bhd chief executive officer Danny Wong explained that sustained higher oil prices would have macroeconomic benefits which will impact oil producers such as Petroliam Nasional Bhd (Petronas), resulting in possibly higher dividends to the government.
“In general, the high oil price can boost sentiment in the O&G sector. However, investors will have to be selective. Oil majors are still cautious,” he qualified.
Sapura Energy Bhd has clarified that the bankruptcy filing by Seadrill Ltd’s Asian units (Seadrill Asian) did not affect its Brazil joint venture (JV) Sapura Navegacao Maritima SA (SNM). The group made the bourse filing in response to a media report which mentioned that the Chapter 11 filing may affect the JV.
(Feb 8): Seadrill Ltd, the rig operator controlled by billionaire John Fredriksen, filed for bankruptcy protection for its Asian units after the economic downturn triggered by the coronavirus pandemic worsened a crisis in offshore oil drilling.