Weatherford to File for Bankruptcy
Irish-domiciled multinational oil and natural gas service company Weatherford International has entered into an agreement with its top creditors that will allow the company to file for a "prepackaged" Chapter 11 bankruptcy - after more than four years without making a profit.Weatherford expects to implement the Restructuring Agreement through a "pre-packaged" Chapter 11 process and expects to file U.S. chapter 11 and Irish examinership proceedings.
Odfjell Drilling buys “Deepsea Nordkapp”
Odfjell Drilling announced that Aker BP has today awarded Odfjell Drilling a 2 year firm drilling contract with 1+1 year optional periods. The day rates for the drilling contract will be based on market terms to be determined prior to commencement of drilling operations. In addition to the market linked day rate, a performance bonus as agreed in the alliance agreement with Aker BP, as announced on 21 November 2017, will apply. The contract has a minimum value of USD 245 million, subject to certain adjustments.
Seadrill, Creditors Reach Joint Restructuring Deal
Shipping tycoon John Fredriksen has reached an agreement with a majority of creditors over a restructuring plan for oil rig firm Seadrill, according to U.S. court documents on Monday. The company, once the world's largest offshore driller by market value, filed for Chapter 11 bankruptcy protection with debt and liabilities of over $10 billion last September after a sharp drop in oil prices in 2014 cut demand for rigs. "It's good for all parties that Seadrill comes out of an expensive and time-consuming process…
Congo Seeks Debt Relief From Trading Houses
IMF pushing Congo to renegotiate debt; loans primarily came from Trafigura, Glencore. Congo Republic is set to become the latest African country to start debt relief talks with trading houses after borrowing $2 billion from merchants such as Trafigura and Glencore but now finding its debt levels unsustainable, sources familiar with the matter said. Trading houses regularly lend money to resource-rich clients in financial distress - be it countries such as Congo…
Seadrill Close to Restructuring Deal with Bondholders
Seadrill's main owner, billionaire John Fredriksen, is close to a deal with unsecured bondholders and South Korean shipyards on a restructuring plan for the rig operator, sources familiar with the talks said on Thursday. The Norwegian company, which last year filed for bankruptcy protection in a U.S. court, has been working with creditors since last month on a restructuring plan to bring in more than $1 billion in fresh funding, allow it to maintain its fleet of rigs and pay creditors and staff.
Seadrill Postpones Court Hearing for Restructuring Talks
Drilling rig company Seadrill said in a court filing it postponed an initial hearing on its restructuring plan to Feb. 7, which sources told Reuters will give the company more time to consider alternative restructuring plans. Once the largest drilling rig operator by market value, Seadrill filed for bankruptcy protection in Texas on Sept. 12 after being hit hard by cutbacks in oil company investment following a steep drop in crude prices.
Saudi's ADC Weighs Bid for Land Rig Operator Dalma
Saudi Arabia's Arabian Drilling Company (ADC) is considering bidding for Dalma Energy, sources told Reuters, in a deal which could value the land rig operator at more than $500 million. U.S. investment bank Goldman Sachs had been hired to arrange the sale of Dalma, which is owned by a consortium of investors through Saudi-based Al Qahtani Investments, two of the sources said on Tuesday. ADC is interested in Dalma's assets including those in Saudi Arabia…
AEP: Spinoffs Not Impacted by McClendon's Firm Closure
The closure of American Energy Partners after the sudden death of founder Aubrey McClendon will not affect companies it formed and spun off with Texas-based private equity firm Energy & Minerals Group, according to a statement from AEP. McClendon, a U.S. fracking pioneer, started AEP to make a comeback after being ousted as chief executive officer of Chesapeake Energy Corp in 2013. He received crucial support for his new venture from Energy & Minerals.
Penn Virginia Files for Bankruptcy Protection
Oil and natural gas producer Penn Virginia Corp said on Thursday it had filed for bankruptcy protection, the latest company to fall victim to the oil price rout. Dozens of U.S. shale companies have sought bankruptcy protection in recent months as a near-60 percent slump in oil prices since mid-2014 erodes cash flows. This has forced companies to restructure debt taken on during a frenzy of development in recent years. Penn…
Pacific Exploration, Catalyst Capital Negotiate Restructuring
Oil and gas producer Pacific Exploration & Production Corp said its board has agreed to negotiate a financial restructuring involving private-equity fund Catalyst Capital Group Inc, sending its shares down more than 6 percent. Weak oil prices have forced numerous companies to delay paying interest, renegotiate agreements and even file for bankruptcy. Pacific Exploration said last month it chose not to make an interest payment due March 28…
US Shale Firms Squeezed by Tightening Credit
Nearly two years into an epic oil rout, U.S. shale drillers that have upended global energy markets are finally feeling a credit squeeze as banks make their biggest cuts yet to their loans. Every six months, oil and gas producers and their banks negotiate how much credit they should be given based on the value of their reserves in the ground. In previous reviews, banks were willing to offer borrowers some leeway, encouraged…
Juicy Yields on Energy Bonds Attracting PE Firms
Crude price volatility may not have completely closed the funding doors for US high-yield energy companies as private equity firms and new funds prepare to snap up juicy yields on offer after a recent slump in the sector's bonds. In a likely sign of things to come, GSO Capital Partners, the alternative asset manager owned by Blackstone, last week deployed cash by providing a large order for CrownRock's US$350m high-yield bond - the first such E&P offering in months.
