Seadrill says another bankruptcy is an option - WSJ

Seadrill (SDRL -8.2%) tells WSJ that Chapter 11 financial disaster is on the table, an afternoon after CFO Stuart Jackson said the downturn because of the coronavirus and the Saudi-Russian oil price had compelled the business enterprise to abandon what became an "interim solution" to its debt woes and recognition on a complete restructuring.

"We are considering all alternatives at this stage, of which Chapter 11 is one," a Seadrill spokesman says, adding the restructuring state of affairs remains fluid. "We expect this to take place over the coming year, however it's miles too early to mention for certain."

On yesterday's convention call, Jackson said the organization believes it has enough liquidity to control its commercial enterprise as well as the restructuring process.

"From an investment perspective, we've additionally written down the price of our Seadrill Partners maintaining to zero, as we count on this entity will pass into a comprehensive restructuring of its stability sheets in the coming future," Jackson stated.

More news

Oil Price Rallies Ahead Of Fundamentals

US oil manufacturing averaged ~10 mb/d in May.

But production is about to go back in June in all likelihood lower back to ~eleven mb/d.

We see US oil production recuperating eventually back to ~eleven.five mb/d however current decline quotes will devour into manufacturing after that.

Oil fees are rallying in advance of basics, this means that it will likely be a uneven rebalancing if product storages don't begin drawing soon.


READ NEWS

OPEC+ To Consider Market Fundamentals, Not Prices

The partial healing in demand which has been driven by the easing of lockdowns globally has helped the OPEC+ group in its objective.


READ NEWS

Would you like to watch some videos?

TOP 5 Ship Collision. Vessels crash.