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John Fredriksen’s rig company Seadrill writes in a stock exchange announcement that the restructuring plan has been approved by the creditors.
The company has carried out a reconciliation of the rescue plan where 96 per cent of the secured lenders have voted. Of these, 88 percent have accepted the plan, according to the report.
According to the company, the plan means that current shareholders will be left with an ownership share of 0.25 percent.
The share has risen sharply from the start on the Oslo Stock Exchange, and after a few minutes of trading is up over 30 percent.
– Important step
The crisis-stricken rig company has been under bankruptcy protection in the USA since February. In early September, it became clear that a court in Texas had approved the company’s plan about a reorganization.
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– The almost unanimous approval from our lenders is an important step towards Seadrill’s way out of chapter 11, says CFO Grant Creed in a statement.
Chapter 11 means that the company is under temporary bankruptcy protection.
“This has been a long journey to gain broad support from our creditors, but I am convinced that our eventual recovery will place us back in the heart of a sector that is undergoing significant readjustments, and will strengthen our position as a market leader,” says Creed.
Must be approved by court
According to the report, the rescue plan will go to court on October 26, and the rig company writes that it is on track to get the plan approved. If the plan is approved, the company hopes to be out of the temporary bankruptcy protection around 60 days after this.
On July 24, Seadrill presented a rescue plan to convert the bank debt of 5.6 billion dollars to 750 million. This means that creditors get the first right to contribute with a new loan of 300 million dollars, at the same time as the lenders take over 99.75 percent of the shares in the company.
This means that the current shareholders will be left with crumbs, or 0.25 per cent of the shares in the company. Today’s main owner John Fredriksen will contribute with a convertible loan of 50 million dollars, which can give him five percent of the shares.
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