Seadrill Announces Expiry of Forbearance Agreements
Reference is made to the announcements by Seadrill Limited on 30 December 2020 regarding forbearance agreements entered into by the Company with certain creditors in respect of the group’s senior secured credit facility agreements.
The term of the forbearance agreements expired on 29 January 2021, and, accordingly, the creditors with whom forbearance agreements were entered into are no longer prevented from taking actions in respect of events of default that may arise under the senior secured credit facility agreements as a result of the group not making interest payments under the group’s senior secured credit agreements.
The Company continues to maintain its readiness to carry out a comprehensive restructuring of its balance sheet. Such a restructuring may involve the use of a court-supervised process. The Company continues to engage in constructive discussions in relation to potential further forbearances and to finalise the heads of terms of a comprehensive restructuring of its balance sheet; whilst no agreement has been reached at this point it is expected that potential solutions will lead to significant equitization of debt which is likely to result in minimal or no recovery for current shareholders.