Seadrill Drops After Warning Restructuring May Involve Chapter 11 Proceedings
Shares of Seadrill (SDRL) are sharply lower in pre-market trading after the company announced that it has reached agreement with its banking group to extend a series of key dates as part of the company's ongoing restructuring efforts. The company has reached an agreement to extend the milestone to implement a restructuring plan from April 30 to July 31 2017 and also to extend the related covenant amendments and waivers expiring on June 30 2017 to September 30 2017.
The company has also received lender consent to extend the maturity dates of three facilities. Seadrill stated: "We expect the implementation of a comprehensive restructuring plan will likely involve schemes of arrangement or chapter 11 proceedings, and we are preparing accordingly. The company's business operations remain unaffected by these restructuring efforts and the company will continue to meet its ongoing customer and business counterparty obligations."
In pre-market trading, Seadrill shares have fallen 62c, or 37%, to $1.05.
Disclosure: None.