Hamilton, Bermuda, July 26, 2017, Seadrill Limited ("SDRL" or "the Company") announces today that it has reached an agreement with its bank group to extend the comprehensive restructuring plan negotiating period until 12 September 2017.

 

The Company has also received lender consent to extend the maturity date under the US$400 million credit facility from 31 August 2017 until 14 September 2017. The extension will become effective upon satisfaction or waiver of customary conditions precedent.

 

In relation to the West Eminence facility, the Company has received the support of lenders representing 84% of the exposure under the US$450 million credit facility maturing on 15 August 2017 (the "US$450m Facility") to extend the maturity date under the US$450m Facility to 14 September 2017. The Company expects that a scheme of arrangement under section 99 of the Companies Act 1981 of Bermuda, which requires a majority in number of the lenders representing 75% in value, will be used to implement the extension of the US$450m Facility if an acceptable maturity extension agreement is not reached.

 

The Company is in advanced discussions with certain third party and related party investors and its secured lenders on the terms of a comprehensive recapitalization, which remain subject to further negotiation, final due diligence, 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. The extension provides additional time to finalise negotiations and prepare for the necessary potential implementation filings.

 

It is likely that the comprehensive restructuring plan 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 recovery for their existing shares.

 

The Company's business operations remain unaffected by these restructuring efforts and the Company expects to continue to meet its ongoing customer and business counterparty obligations.

 

 

FORWARD LOOKING STATEMENTS

 

This news release includes forward looking statements. Such statements are generally not historical in nature, and specifically include statements about the Company's plans, strategies, business prospects, changes and trends in its business and the markets in which it operates. These statements are made based upon management's current plans, expectations, assumptions and beliefs concerning future events impacting the Company and therefore involve a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, which speak only as of the date of this news release. Consequently, no forward-looking statement can be guaranteed. When considering these forward-looking statements, you should keep in mind the risks described from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 20-F (File No. 001-34667). The Company undertakes no obligation to update any forward looking statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. New factors emerge from time to time, and it is not possible for the Company to predict all of these factors. Further, the Company cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward looking statement.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.