Slaughter and May advises Seadrill on its chapter 11 Cases

Slaughter and May advised Seadrill Limited (“Seadrill”) on the negotiation and implementation of a comprehensive restructuring implemented by way of Chapter 11 plan of reorganisation.

The restructuring has significantly delevered Seadrill’s balance sheet by equitizing approximately $4.9 billion of secured bank debt previously held across twelve silos, resulting in a streamlined capital structure with a single collateral silo.  Seadrill also raised $350 million in new financing pursuant to the plan.  Holders of existing shares in in the new parent company’s predecessor were reduced to 0.25% of their existing holdings while employee, customer and ordinary trade claims were unaffected by the restructuring.  Seadrill’s streamlined capital structure and the substantial liquidity raised pursuant to the restructuring plan should provide the group with a secure footing to pursue opportunities in the offshore drilling sector and grow value for its stakeholders.

The restructuring was developed over the course of extensive discussions preceding and following Seadrill’s chapter 11 filing in February 2021 and was approved by the US bankruptcy court on 26 October 2021 after receiving overwhelming support from Seadrill’s stakeholders.

Slaughter and May, as corporate counsel, worked as part of an integrated team with the Seadrill in-house legal team and Kirkland & Ellis LLP.  Advokatfirmaet Thommessen AS advised on Norwegian law aspects and Conyers Dill & Pearman Limited advised on Bermuda law aspects.

Slaughter and May also advised Seadrill on related arrangements with Northern Drilling and Seadrill New Finance Limited (renamed Paratus Energy Services Ltd.) on a restructuring in relation to its secured notes that completed earlier this year.

Robert Byk Partner
Claire Cooke Partner
Harry Walker-White Associate
Emma Girot Associate

Shamir Sawjani / Trainee, Holly Southey / Trainee, Mark Bogod / Trainee, Iain Meiklejohn / Trainee

Restructuring and Insolvency
Ian Johnson Partner
Claire Jeffs Partner
Rosalind Paulson Associate