Seadrill subsidiary extends forbearance agreement for 12% notes

Chicago, Feb. 23 – Seadrill Ltd. announced that its wholly owned subsidiary Seadrill New Finance Ltd. has extended a forbearance agreement with some holders of its 12% notes due 2025, according to a press release.

The consenting creditors have agreed not to exercise any enforcement rights until and including the earlier of March 10 and any termination of the forbearance agreement, pushed back from Feb. 24 and initially announced on Feb. 11.

The noteholders have agreed to not take action in respect of certain events of default that may arise from the issuer, amongst other things, not making the semiannual 4% cash interest payment that was due on Jan. 15 for their notes and the filing of Chapter 11 cases in the Southern District of Texas by the company and certain of its subsidiaries.

The extension of the forbearance agreement is to give stakeholders more time to negotiate on the heads of terms of a comprehensive restructuring of its balance sheet, which may involve the use of a court-supervised process.

London-based offshore drilling company Seadrill filed Chapter 11 bankruptcy under case number 21-30427.

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