Seadrill Partners unsecured creditor committee objects to statement

By Sarah Lizee

Olympia, Wash., March 18 – Seadrill Partners LLC’s official committee of unsecured creditors objected to the company’s disclosure statement for its Chapter 11 plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The committee said that the disclosure statement fails to provide adequate information regarding the treatment of general unsecured claims.

As it stands, the statement says holders of general unsecured claims will receive treatment “to be determined consistent with the plan support agreement.”

The committee said that the uncertainty regarding plan treatment is compounded by a plan feature that may add an unquantified term loan B deficiency claim to the general unsecured claim pool, depending on voting outcomes.

“A ‘to be determined’ plan treatment cannot possibly provide adequate information to holders of general unsecured claims, and the referenced plan support agreement does not provide the missing detail,” the group said.

“Debtors must disclose a treatment for general unsecured claims before solicitation, voting and confirmation can proceed.”

London-based Seadrill Partners owns, operates and acquires offshore drilling rigs and filed Chapter 11 bankruptcy on Dec. 1 under case number 20-35740.

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