Seadrill New Finance replaces forbearance agreement for 12% notes

By Wendy Van Sickle

Columbus, Ohio, April 19 – Seadrill Ltd. said Seadrill New Finance Ltd. agreed to replace the existing forbearance agreement announced on Feb. 11 with a new forbearance agreement for the 12% senior secured notes due 2025, according to a news release.

	Under the new forbearance agreement, the consenting noteholders have agreed not to exercise any enforcement rights with respect to the issuer and any subsidiary that is an obligor under the notes to, or otherwise take actions in respect of, certain events of default that may arise under as a result of, among other things, the issuer not making the semiannual 4% cash interest payment due on	Jan. 15	in respect of their notes and the filing of Chapter 11 cases in the Southern District of	Texas	by the company and certain of its consolidated subsidiaries until and including the earlier of	May 17	and any termination of the forbearance agreement.
	The purpose of the new forbearance agreement is to allow the issuer and its stakeholders more time to negotiate the terms of a comprehensive restructuring of its balance sheet. Such a restructuring may involve the use of a court-supervised process.
	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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