Legal Services
Slaughterandmay
Full Credential Description
Seadrill New Finance Limited faced significant challenges related to its secured notes, necessitating a comprehensive restructuring to address its financial difficulties. The company sought to amend and extend its secured notes while transferring majority ownership to its secured noteholders. As part of this restructuring, Seadrill Limited retained a 35% stake and agreed to provide management under new agreements. The tailored solution involved a detailed negotiation process that spanned several months, culminating in a one day chapter 11 filing in the United States Bankruptcy Court for the Southern District of Texas on January 11, 2022. This strategic move garnered overwhelming support from existing stakeholders, leading to the confirmation of the reorganization plan by the Court just 24 hours later, with an objection from the US Trustee being rejected. Additionally, Slaughter and May advised on the restructuring of SeaMex Ltd., a joint venture of Seadrill New Finance. This restructuring was executed through a provisional liquidation process in Bermuda, resulting in the transfer of nearly all assets, including subsidiary shares, to a wholly-owned subsidiary of Seadrill New Finance in November 2021. The asset sale consideration included the release of a significant portion of intra-group debt, alongside a refinancing of SeaMexs bank debt. The restructuring efforts not only stabilized Seadrill New Finance but also positioned it for future growth, demonstrating the effectiveness of the tailored legal and financial strategies employed by Slaughter and May in collaboration with the Seadrill in-house team and Kirkland Ellis LLP.