SEADRILL Ltd current report, Q3 FY2021

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Seadrill Limited Form 6-K Summary

Business context and reporting period

Seadrill Limited filed this Form 6-K for September 2021. The September 2, 2021 announcement concerns the restructuring of SeaMex Ltd. and related actions by Seadrill New Finance Limited, the issuer.

Transaction and key financial matters

  • Seadrill New Finance Limited entered into a share purchase agreement to sell substantially all assets of SeaMex to a newly incorporated, wholly owned subsidiary of the issuer.
  • Completion remains subject to customary conditions, including certain antitrust approvals.
  • The filing does not provide revenue, profit, cash flow, margin, debt, liquidity, or transaction-value figures.

Material changes versus the prior comparable period

Compared with the August 31, 2021 announcement, the material update is the execution of the share purchase agreement implementing the SeaMex asset sale. The filing does not present comparative operating or financial results.

Restructuring, outlook, risks, and contingencies

  • Under Seadrill’s plan of reorganisation, existing shareholders are expected to receive 0.25% of the new equity, subject to dilution, if creditor classes 4 and 6 vote to accept the plan; otherwise, existing shareholders will receive no recovery.
  • Consummation of the reorganisation plan remains subject to customary conditions, including court approval.
  • The SeaMex transaction remains conditional, including on antitrust approvals.
  • Management’s forward-looking statements regarding the restructuring and business prospects are subject to substantial risks and uncertainties. Actual results may differ materially, and the company undertakes no obligation to update such statements.

Facts investors should verify

  1. Whether all conditions to the SeaMex asset sale, including antitrust approvals, are satisfied and when closing occurs.
  2. Whether creditor classes 4 and 6 approve Seadrill’s plan of reorganisation.
  3. Whether the plan receives court approval and is consummated.
  4. The final recovery and dilution applicable to existing Seadrill shareholders.
  5. The company’s subsequent filings for the financial effects of the SeaMex transaction and restructuring.