Seadrill Limited Form 6-K Summary
Business Context and Reporting Period
Seadrill Limited filed this Form 6-K for February 2022, dated February 22, 2022. The filing announces the anticipated completion of the Company’s Chapter 11 restructuring. Seadrill is an offshore drilling contractor operating drillships, jack-ups and semi-submersibles across shallow- to ultra-deep-water markets.
Key Financial and Operating Metrics
- The filing does not provide revenue, net income, cash flow, margins, debt balances, liquidity figures or other financial statement metrics.
- The Company states that it owns or operates 35 rigs.
- Upon emergence, the new Seadrill parent is expected to have approximately 50 million new common shares outstanding.
- Existing shareholders are expected to receive 0.25% of the new common shares, subject to the restructuring terms.
Material Changes Versus the Prior Comparable Period
- The principal disclosed change is the expected emergence from Chapter 11 in February 2022, likely before the end of the week following the February 21 announcement.
- The Chapter 11 plan was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas on October 26, 2021.
- The new parent company is expected to be renamed Seadrill Limited on or about the emergence date.
- Trading in Seadrill’s existing Oslo-listed shares will be suspended after the effective emergence date.
Guidance, Outlook, Risks and Unusual Items
- Subject to required approvals, the new common shares are intended to list on the Euronext Expand market in Oslo in the second quarter of 2022, followed by a proposed uplisting to the main market of the Oslo Stock Exchange and a proposed New York Stock Exchange listing.
- The stated timing of emergence and planned listings are forward-looking expectations and are subject to conditions precedent, approvals and other risks.
- Management cautions that restructuring plans, business prospects, market conditions and other forward-looking statements may differ materially from actual outcomes because of risks, uncertainties and assumptions.
- The filing refers investors to the Company’s SEC filings, including its Form 20-F, for additional risk factors. Seadrill undertakes no obligation to update the forward-looking statements.
Investor Verification Checklist
- Verify the actual effective date of emergence from Chapter 11 and satisfaction of all conditions precedent.
- Confirm the final capitalization, including the approximately 50 million new shares and the allocation to existing shareholders.
- Confirm the suspension, cancellation or replacement of existing Oslo-listed shares and the treatment of existing shareholder interests.
- Verify regulatory approvals and the timing and completion of the proposed Euronext Expand, Oslo main-market and NYSE listings.
- Review subsequent filings for post-emergence debt, liquidity, operating performance, fleet status and restructuring-related obligations.