The U.S. Bankruptcy Court approved Seadrill’s motion to extend the exclusive period during which the Company can file a Chapter 11 plan and solicit acceptances thereof through and including May 10, 2018 and July 9, 2018 respectively.
As previously reported, “To capture the full benefit of the Restructuring Support Agreement, the Debtors must proceed through these chapter 11 cases at a steady pace. The Investment Agreement governing the Capital Commitment contains milestones that require the Debtors to obtain approval of their disclosure statement by February 9, 2018, and to confirm a plan of reorganization by June 9, 2018. To this end, the Debtors have made significant progress to date….Additionally, the Debtors have continued to actively engage with various parties in interest not party to the Restructuring Support Agreement, including the official committee of unsecured creditors appointed in these chapter 11 cases (the ‘Creditors’ Committee’), an ad hoc group of unsecured noteholders (the ‘Ad Hoc Group’), and participants in the Debtors’ postpetition marketing process.”
In addition, “This opportunity to secure incremental value, though, exists only so long as the Debtors maintain exclusivity. The Debtors’ current Plan is the foundation on which the Debtors are building a value-maximizing restructuring. The lapse of exclusivity could potentially destroy the progress the Debtors have made over the first three months of these cases and jeopardize the ability of the Debtors to secure the benefit of the Capital Commitment.”
Read more Seadrill bankruptcy news.