Hamilton, Bermuda, April 4, 2017 - North Atlantic Drilling Limited ("NADL or the Company") a majority owned subsidiary of Seadrill Limited, announces today that Seadrill Limited, on behalf of NADL and other relevant companies, and its banking group have agreed to extend a series of key dates as part of Seadrill Limited's ongoing restructuring efforts.
Seadrill Limited has reached an agreement to extend the milestone to implement a restructuring plan from 30 April to 31 July 2017 and also to extend the related covenant amendments and waivers expiring on 30 June 2017 to 30 September 2017. Finally, the Company has also received lender consent to extend the US$2.0 billion NADL credit facility maturing on 30 June 2017 until 14 September 2017.
These amendments are part of a broader package of measures Seadrill Limited, our major shareholder, is undertaking to refinance and recapitalize the business. While no definitive terms have been reached, based on feedback from Seadrill Limited, as well as the Company's existing leverage, we currently believe that a comprehensive restructuring plan will require a substantial impairment or conversion of our bonds, as well as impairment, losses or substantial dilution for other stakeholders. As a result, the Company currently expects that shareholders are likely to receive minimal recovery for their existing shares.
The Company expects the implementation of a comprehensive restructuring plan will likely involve schemes of arrangement or chapter 11 proceedings and is preparing accordingly. The Company's business operations remain unaffected by these restructuring efforts and the Company will continue to meet its ongoing customer and business counterparty obligations.
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