Seadrill files for bankruptcy in bid to shrink debt load

Wilmington, Delaware

SEADRILL Ltd - whose unit North Atlantic Drilling has a standstill agreement with Sembcorp Marine for a rig delivery - has filed for bankruptcy protection after working out a deal with almost all its senior lenders to inject US$1 billion of new money into the company.

Under the proposal, lenders will extend the maturity on US$5.7 billion in debt, with no amortisation payments due until 2020. Should lower-ranking creditors join the proposal, US$2.3 billion in unsecured bonds would be converted into a 15 per cent stake in the company, Seadrill said in a statement.