SEADRILL ASIA OIL COMPANY FILES FOR BANKRUPTCY

Seadrill Ltd., the rig operator, has filed for bankruptcy protection for its Asian subdivisions. This happened just after the economic downturn caused by the COVID-19 pandemic exacerbated the crisis in the work of offshore oil wells. The company filed for bankruptcy protection in the Southern District of Texas.

Experts point out that the current bankruptcy petition filed in the US court is the second petition filed by the company, which was once the largest in terms of its market value.

The statement emphasizes that the current application covers the activities of several Asian subdivisions at once.

Back on February 3, the firm stated it had reached an agreement with major creditors, and obtained time until mid-February to finalize a plan to restructure and further bolster its finances. It is known that 9 out of 12 contracts, which provided the company with a priority credit line, have already been terminated by now.

Seadrill was founded in 2005 by Norwegian billionaire John Fredriksen. It was incorporated in Bermuda to minimize tax deductions and was operated from offices located in London and Houston. The deepwater drilling contractor was called the crown jewel of the Fredriksen business empire.

However, the collapse in oil prices in 2014 forced it to cut back on business, as many oil companies cut their rig costs at the time.

In December 2017, the organization filed for bankruptcy.

Despite the fact that Seadrill came out of bankruptcy in July 2018, the firm retained $ 6 billion in debt to banks. The owner's hopes for a quick recovery in the drilling market did not come true, and last year the company resumed negotiations with creditors about a possible bankruptcy. Last summer, the company's shares were removed from the New York Stock Exchange.