Successful chapter 11 for one of the largest offshore oil drillers

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Restructuring US$7.4 billion of secured debt involved more than a quarter of the world’s 100 largest banks.

Stormy seas buffet a market-leading oil driller

After growing rapidly for years, Seadrill Limited faced a downturn in global oil markets, forecasts of declining short- to medium-term revenues and a wall of debt maturities. Its need for bankruptcy protection triggered the offshore drilling sector's largest-ever chapter 11 restructuring, with a dual hub structure in London and New York.

Coordinating a two-year, cross-border restructuring

More than 100 of our lawyers in 11 offices advised the coordinating committee that represented 44 banks and export credit agencies holding US$7.4 billion of Seadrill's senior secured debt. 18 months of negotiations culminated in the filing and approval of a prearranged chapter 11 plan, with terms that included US$1billion of investments by an existing owner and several hedge funds.

Restored to a stable platform

As a result, Seadrill's secured bank facilities have been reinstated in full for senior lenders with adjusted terms in an improved, de-levered structure. And Seadrill's capital structure, with a new US$1 billion investment, has been re-profiled to meet the oil sector's current challenges and prepare for a recovery in the years ahead.

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