Seadrill Could Be Heading for Bankruptcy
The oil rig owner SeaDrill could be forced into bankruptcy protection soon, if it fails to reach a restructuring agreement with its lenders, reports Reuters.
The rig firm, controlled by John Fredriksen, is battling with $14 billion in debt and liabilities.
"In the event a consensual restructuring agreement is not concluded or an agreement to an extension is not reached, we are also preparing various contingency plans, including potential schemes of arrangement or chapter 11 proceedings," the company warns.
SeaDrill has been struggling to cope with a slump in charter rates and a sharp slowdown in activity as lower oil prices have made offshore oil exploration unattractive for producers.
The company, which owns 64 oil rigs and drilling ships, announced of its postponed full-year results for last year (2016), which showed a net loss for the year of $111m, down from a $635m loss for 2015.
The Norwegian-born billionaire announced plans to beef up the tanker business and update its fleet while prices for vessels are low to position it for an expected recovery in rates from 2018.
