Shares in what was once the crown jewel in shipping tycoon John Fredriksen's empire have already fallen 95 percent in the past three years as low oil prices prompted drastic spending cuts by energy companies, hammering rig rates.
LONDON: Seadrill Ltd, the offshore driller with the heaviest debt load, dropped as much as 25% yesterday to the lowest since November as equity investors face “significant dilution” with the debt restructuring process.
The company is seeking to raise at least US$1bil in new capital and is in talks with billionaire-owner John Fredriksen and new investors, it said in a statement. The driller also proposed extending unsecured claims maturities out 2025 to 2028, pushing bank maturities out to 2021 to 2023, amending financial covenants and reducing fixed amortisation, it said.
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