HAMILTON, Bermuda, Sept. 29, 2020 /PRNewswire/ -- Seadrill
Limited ("Seadrill" or the "Company") (OSE: SDRL) (OTCQX: SDRLF)
announces that it has agreed to extend and/or renew the existing
forbearance agreements with certain creditors, announced on
15 September 2020, in respect of the
group's senior secured credit facility agreements, senior secured
notes, and guarantee facility agreement.
Pursuant to the forbearance agreements, as extended, the
consenting creditors have agreed not to exercise any voting rights
to, or otherwise take actions, in respect of certain events of
default that may arise under the senior secured credit
facility agreements, senior notes and guarantee facility agreement
as a result of the group not making certain interest and charter
hire payments under the group's senior secured credit agreements
and leasing arrangements, until and including the earlier of
31 October 2020 and any termination
of the forbearance agreements.
Forbearance has not yet been agreed with respect to certain
defaults that may arise under the Company's leasing agreements in
respect of the West Hercules, West Linus and West Taurus. Without a
forbearance in respect of these leasing agreements, non-payment of
charter hire and interest could result in enforcement of a default
or cross-default under such leasing agreements.
The purpose of the forbearance agreements continues to be to
allow the Company and its stakeholders more time to negotiate on
the head terms of a comprehensive restructuring of its balance
sheet. Such a restructuring may involve the use of a
court-supervised process. The Company continues to evaluate capital
structure proposals from its financial stakeholders; 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.
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, the markets in which
it operates and its restructuring efforts. 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 regulatory filings and
periodical reporting. 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.
CONTACT:
seadrill@hawthornadvisors.com
+44(0)20 3745 4960
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