Photographer: SeongJoon Cho / Bloomberg
Photographer: SeongJoon Cho / Bloomberg
Seadrill Limited, the rig company controlled by billionaire John Fredriksen, has been filed for bankruptcy protection for its Asian units following the economic downturn triggered by the critical coronavirus pandemic in oil drilling over-east.
The filing in the U.S. Bankruptcy Court in South Texas District is the second in four years by the once largest drill in the industry by market value. The filing covers Seadrill GCC Operations, Asia Offshore Drilling Ltd., Asia Offshore Rig 1 Ltd., Asia Offshore Rig 2 Ltd. and Asia Offshore Rig 3 Ltd., the company said in a early Monday report.
On February 3, the company said it they received a new conduct agreement from most of its major secured lenders, which took time until mid-February to make a plan to raise its finances. Nine of the group’s 12 high credit resource agreements have now been finalized.
Norwegian shipping tycoon Fredriksen founded Seadrill in 2005 and turned it into the crown jewel of his industrial empire. However, when crude prices fell in 2014, the company was forced to reduce its operations as oil companies reduced the cost of lazy beds.
Seadrill completed a review of its finances in July 2018 however it left bankruptcy protection with bank debt of nearly $ 6 billion. The drill market rebounded at a slower pace than the company expected and Seadrill resumed talks with creditors again last year.