Seadrill Rises as Creditors Reach Joint Restructuring Deal

U.S.-listed shares of oil rig firm Seadrill (SDRL) are up 10 percent at 28 cents in early trade.

 

Seadrill, controlled by John Fredriksen, has reached an agreement with a majority of creditors over a restructuring plan according to U.S. court documents.

 

Under an amended plan, the company will raise $1.08 billion in new capital via the issuance of new secured notes and equity.

 

The company 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.

 

Seadrill's U.S.-listed shares are now up 25.3 percent YTD; Oslo-listed shares are up about 19 percent this year.

(Reporting by Shreyashi Sanyal in Bengaluru)