Akin Gump Advises Ad Hoc Group of Noteholders on the Restructuring of Seadrill New Finance Limited and Its Emergence from Chapter 11

(London) – Akin Gump has advised the ad hoc group of new secured noteholders in relation to the financial restructuring and chapter 11 case of offshore drilling contractor Seadrill New Finance Limited (“the Issuer”) and its outstanding note liabilities of approximately $620 million. Going forward, the Issuer will be renamed Paratus Energy Services Ltd.

Seadrill Limited and the Issuer announced today that the Issuer has emerged from chapter 11, having recently received approval from the U.S. Bankruptcy Court for the Southern District of Texas for its “one-day” chapter 11 restructuring. The court confirmed the Issuer’s chapter 11 plan of reorganization, having received near-unanimous support from existing stakeholders.

This provides the Issuer with financial flexibility and stability by amending and extending its secured notes, effecting a transfer of 65% of the ownership of the Issuer from the larger Seadrill Group to the secured noteholders, and facilitating the entry into agreements with Seadrill for the continued provision of management services and operational support to the Issuer and its subsidiaries. The reorganization plan also provides for the satisfaction of all trade, customer and other nonfunded debt claims in full in the ordinary course of business.

During the restructuring process, Akin Gump also advised the ad hoc group of new secured noteholders with respect to the current chapter 11 cases of the Seadrill Group and the financial restructuring of SeaMex Ltd, a joint venture investment of the Issuer, which involved a provisional liquidation in Bermuda, the purchase by the Issuer of the assets of SeaMex Ltd, and the refinancing of the outstanding senior secured debt liabilities of SeaMex Ltd through the issuance of approximately $220 million of new private placement notes.

The Akin Gump team advising the ad hoc group of new secured noteholders was led by London financial restructuring partner James Terry with counsel Jakeob Brown. The team also included a cross-practice team of lawyers from across the firm, including financial restructuring partners Philip Dublin and Naomi Moss and associates Diana Dai and Malak Doss; corporate partners Inderveer Hothi, Vance Chapman, Rosa Testani, Jesse Brush and Clare Cottle, counsel Nicholas Pascal, Jing Ng, Vivian Wong and Yehuda Raskin and associate Ahmed Alfreahat; litigation partner Justin Williams and counsel Conor Mc Stravick; competition partner Davina Garrod and international trade associate Andrzej O'Leary; and tax partner Sophie Donnithorne-Tait and counsel Mohammed Natha.

Akin Gump worked alongside Ducera Partners, led by Michael Kramer and Jason Koh, acting as financial adviser to the ad hoc group.

Akin Gump had previously advised an ad hoc committee of bondholders in connection with the prior chapter 11 cases of the Seadrill Group in 2018.

Akin Gump Strauss Hauer & Feld LLP is a leading international law firm with more than 900 lawyers in offices throughout the United States, Europe, Asia and the Middle East.

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