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jewel star, https://play.google.com/store/apps/details?id=com.pandakidgame.jewelstar. By Ole Petter Skonnord<br><br>OSLO, July 26 (Reuters) - Offshore drilling contractor Seadrill again delayed restructuring its $14 billion in debt and liabilities on Wednesday and reiterated that Chapter 11 bankruptcy was likely.<br><br>Once the biggest offshore rig firm by market value and the crown jewel in the business empire of Norwegian billionaire John Fredriksen, Seadrill shares have fallen 99 percent from a September 2013 peak.<br><br>The company's business has struggled as energy firms have slashed investment due to a more than 50 percent fall in the price of crude oil since 2014.<br><br>"(Seadrill) has reached an agreement with its bank group to extend the comprehensive restructuring plan negotiating period until Sept. 12," the firm said in a statement, pushing back a previous July 31 deadline and the latest of several delays.<br><br>The company is negotiating with more than 40 banks, including Norway's DNB, Sweden's Nordea and Denmark's Danske Bank, as well as with bondholders and several rig-building yards.<br><br>In April, Seadrill warned its shares would lose almost all of their value and its bonds would be hit as it was preparing for potential bankruptcy proceedings.<br><br>"We continue to believe that implementation of a comprehensive restructuring plan will likely involve Chapter 11 proceedings," it said on Wednesday.<br><br>The company said such a plan would require a substantial impairment or conversion of its bonds, impairments and losses for other stakeholders, including shipyards, while shareholders are likely to receive a minimal recovery for their shares.<br><br>Seadrill's shares were up 2.5 percent at 0738 GMT, against an Oslo benchmark index up 0.8 percent, on signs that the talks to resolve the situation were ongoing.<br><br>But the outcome of talks remains uncertain and the latest delay shows the complexity of finding a solution with so many parties involved, Erling Tveit, a Fearnleys credit analyst, said.<br><br>"It shows that the process takes a long time," Tveit said.<br><br>Seadrill shares, which reached an all-time high of 289 crowns in 2013, were trading at 3.67 crowns at 0738 GMT.<br><br>The company has rigs under construction at Samsung and DSME shipyards in South Korea, Jurong in Singapore, and Dalian and COSCO in China. ($1 = 8.0034 Norwegian crowns) (Additional reporting by Gwladys Fouche in Oslo; editing by Jason Neely and Alexander Smith)
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Latest revision as of 04:14, 26 June 2019

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