The stock of Seadrill (NYSE:SDRL) closed at $0.29 gaining 19.38% in yesterday’s trading session. Seadrill is moving out in a bid to seek out for protection from the restructuring plans of its rival. The unsecured bondholders of Barclays PLC (NYSE:BCS) have proceeded to propose several competing turnaround plans. Seadrill’s spokesperson in a recent interview said that they hoped to succeed in their latest undertaking.
The Offshore rig company Seadrill in its latest statement disclosed that it had received two more non-binding proposals from bondholders in line with a debt restructuring. And that followed move by Norwegian firm filing for the U.S. Chapter 11 bankruptcy protection. That was back in September as a number of court documents indicate.
It was on Friday when Seadrill submitted numerous documents that showed that the two indications of interest were emanating from a number of bondholders that sought alternatives to the firm’s own plan.
A person well conversant with the matter stated, “The Company’s own plan is backed by holders of 99 percent of Seadrill’s bank loans and 40 percent of its bonds, and was submitted by its main shareholder, Norwegian-born billionaire John Fredriksen, and a group of hedge funds.”
Seadrill is ‘fishing’ for a number of ways prove to the U.S. bankruptcy court indeed there was no better plan. Several Seadrill’s advisors reached out to about 94 investors, including seven bondholders, 45 financial investors and 15 oil rig companies.
Seadrill in one of its statements revealed that the two indications of interest that had been received so far emanated from the bondholders and was still anticipating considerable impairment of unsecured creditors.
The Company takes the standpoint that looking at the market it is clear for anyone to discover that there is no viable restructuring transaction to cater for the large number of the holders of Seadrill Limited unsecured claims. It is rather pessimistic and it asserts that it will be quite challenging to offer them anything close to full recovery.
A number of news reporters went after Seadrill seeking to get it to name the bondholders that were behind the alternative proposals. It declined to make any comments.