Cash-strapped offshore driller Seadrill has amended the term credit facility provided to its subsidiary Seadrill Eminence Ltd. to mature on September 14, 2017, thus getting more time for restructuring plan talks with its banks.
The driller, which has been in talks with creditors for months, said on Tuesday that the amendment was implemented by way of a scheme of arrangement under section 99 of the Companies Act 1981 of Bermuda.
The scheme received approval from 100 percent of the number and 100 percent by value of the scheme creditors voting at the scheme meeting and was sanctioned by the Supreme Court of Bermuda on August 14, 2017.
According to Seadrill, the amendment aligns the maturity of the facility with that of the company’s $400 million credit facility and the revolving credit facility provided to North Atlantic Drilling Ltd., a majority owned subsidiary of the company, thereby providing an additional period for negotiations to continue with the company’s bank group and other stakeholders over a comprehensive restructuring plan.
Back in July, the driller was given some breathing space in an effort to restructure its reported $14 billion debt by reaching an agreement with its bank group to extend the comprehensive restructuring plan negotiating period until September 12, 2017.