Seadrill New Finance again extends forbearance agreement to June 4

Chicago, May 27 – Seadrill Ltd. announced that subsidiary Seadrill New Finance Ltd. has agreed to extend the existing forbearance agreement announced on April 19 with respect to its 12% senior secured notes due 2025 with some holders of the notes.

Under the forbearance agreement, as extended, the consenting noteholders agreed not to exercise any enforcement rights with respect to the issuer and any subsidiary of the issuer which is an obligor under the notes to, or otherwise take actions in respect of, certain events of default that may arise under the notes as a result of, amongst other things, the issuer not making the semiannual 4% cash interest payment due to the senior secured noteholders on Jan. 15 in respect of their notes and the filing of Chapter 11 cases in the U.S. Bankruptcy Court for the Southern District of Texas and some of its consolidated subsidiaries, excluding the issuer and its consolidated subsidiaries, until and including the earlier of June 4 and any termination of the forbearance agreement.

Seadrill said the purpose of the forbearance agreement is to allow the issuer and its stakeholders more time to negotiate on the heads of terms of a comprehensive restructuring of its balance sheet.

London-based Seadrill owns, operates and acquires offshore drilling rigs. Seadrill Partners and Seadrill Ltd. made their Chapter 11 bankruptcy filings on Dec. 1 under case number 20-35740 and Feb. 7 under case number 21-30427, respectively.

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