Hamilton, Bermuda | January 12, 2022 - Seadrill Limited ("Seadrill" or the
"Company") (OSE: SDRL, OTCPK: SDRLF) and the Issuer today announce that the
Issuer has successfully received approval from the U.S. Bankruptcy Court for the
Southern District of Texas (the "Court") for its "one-day" chapter 11
restructuring. The Court confirmed the Issuer's chapter 11 plan of
reorganization (the "Plan"), which received nearly unanimous support from
existing stakeholders. The Plan provides the Issuer with financial and
strategic flexibility and stability by amending and extending the Issuer's
secured notes, effectuating a transfer of majority ownership of the Issuer from
the wider Seadrill group to the secured noteholders, and facilitating the entry
into management agreements with Seadrill for the continued provision of
management services and operational support to the Issuer and its subsidiaries.
The Plan also provides for the satisfaction of all trade, customer, and other
non-funded debt claims in full in the ordinary course of business. Benefitting
from both the new ownership structure and the continuity provided by the
Seadrill group, the Issuer expects to continue to focus on maximizing value for
all stakeholders from its portfolio of investments including the Seabras Sapura
JV and the SeaMex group.
The key terms of the Plan include:
· the release by the holders of the Issuer's 12.0% Senior Secured Notes due
2025 (the "Noteholders" and the "Notes", respectively) of all existing
guarantees and security and claims (if any) with respect to Seadrill and its
subsidiaries (excluding the Issuer and certain of its subsidiaries)