Seadrill Heads for Bankruptcy

Photo: Seadrill Limited

By Aiswarya Lakshmi

The oil rig owner SeaDrill could be forced into
bankruptcy protection soon, if it fails to reach a restructuring
agreement with its lenders, reports Reuters.

The Rig firm, controlled by influential shipowner John
Fredriksen, is battling with $14 billion in debt and liabilities.

"In the event a consensual restructuring agreement is not
concluded or an agreement to an extension is not reached, we are
also preparing various contingency plans, including potential
schemes of arrangement or chapter 11 proceedings," the company
warns.

SeaDrill has been struggling to cope with a slump in charter
rates and a sharp slowdown in activity as lower oil prices have
made offshore oil exploration unattractive for producers.

The company, which owns 64 oil rigs and drilling ships, announced
of its postponed full-year results for last year (2016), which
showed a net loss for the year of $111m, down from a $635m loss
for 2015.

The Norwegian-born billionaire announced plans to beef up the
tanker business and update its fleet while prices for vessels are
low to position it for an expected recovery in rates from 2018.

Feb 28, 2017

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