OSLO, April 4 The current shareholders of
Seadrill should expect to lose almost all value of
their stock as the company prepares for potential bankruptcy
proceedings to restructure debt and liabilities of $14 billion,
the rig firm said on Tuesday.
It also said that its banks and other lenders had agreed to
extend ongoing restructuring talks by three months to July 31.
"We currently believe that a comprehensive restructuring
plan will require a substantial impairment or conversion of our
bonds, as well as impairment, losses or substantial dilution for
other stakeholders," Seadrill said in a statement.
"As a result, the company currently expects that
shareholders are likely to receive minimal recovery for their
existing shares ... We expect the implementation of a
comprehensive restructuring plan will likely involve schemes of
arrangement or chapter 11 proceedings, and we are preparing
accordingly," it added.
Once the crown jewel in the empire of shipping tycoon John
Fredriksen, Oslo-listed Seadrill's shares have fallen 95 percent
in the past three years as plunging crude prices and drastic
spending cuts by oil companies hammered rig rates.
(Reporting by Terje Solsvik and Ole Petter Skonnord; Editing by