Seadrill Ltd reports Q2 (Jun) results, beats on revs
- Reports Q2 (Jun) net of breakeven, may not be comparable to the Capital IQ Consensus of ($0.09); revenues fell 33.5% year/year to $577 mln vs the $527.92 mln Capital IQ Consensus.
- Seadrill Limited order backlog of approximately $3.1 billion
Restructuring Update
- The Company is in advanced discussions with certain third party and related party investors, an ad hoc group of its bondholders and its secured lenders on the terms of a comprehensive recapitalization, which remains subject to further negotiation, final due diligence, final documentation and requisite approvals. As previously disclosed, we continue to believe that implementation of a comprehensive restructuring plan will likely involve chapter 11 proceedings, and we are preparing accordingly. We have now completed actions to insulate Archer, Seadrill Partners and Seamex from a default caused by a chapter 11 filing by Seadrill.
- The extension provides additional time to finalize negotiations and prepare for the necessary potential implementation filings.
It is likely that the comprehensive restructuring plan will involve the raising of approximately $1 billion of new capital, an approximately five year extension of our bank facilities and a deferral of amortizations and will require a substantial impairment or conversion of our bonds, as well as impairment and losses for other stakeholders, including shipyards. As a result, the Company currently expects that shareholders are likely to receive minimal or no recovery for their existing shares.
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