NADL - Amendments to Secured Credit Facilities
04 April 2017 - 3:16PM
Hamilton,
Bermuda, April 4, 2017 - North Atlantic Drilling Limited
("NADL or the Company") a majority owned subsidiary of Seadrill
Limited, announces today that Seadrill Limited, on behalf of NADL
and other relevant companies, and its banking group have agreed to
extend a series of key dates as part of Seadrill Limited's ongoing
restructuring efforts.
Seadrill Limited has reached an
agreement to extend the milestone to implement a restructuring plan
from 30 April to 31 July 2017 and also to extend the related
covenant amendments and waivers expiring on 30 June 2017 to 30
September 2017. Finally, the Company has also received lender
consent to extend the US$2.0 billion NADL credit facility maturing
on 30 June 2017 until 14 September 2017.
These amendments are part of a
broader package of measures Seadrill Limited, our major
shareholder, is undertaking to refinance and recapitalize the
business. While no definitive terms have been reached, based on
feedback from Seadrill Limited, as well as the Company's existing
leverage, we currently believe that a comprehensive restructuring
plan will require a substantial impairment or conversion of our
bonds, as well as impairment, losses or substantial dilution for
other stakeholders. As a result, the Company currently
expects that shareholders are likely to receive minimal recovery
for their existing shares.
The Company expects the
implementation of a comprehensive restructuring plan will likely
involve schemes of arrangement or chapter 11 proceedings and is
preparing accordingly. The Company's business operations
remain unaffected by these restructuring efforts and the Company
will continue to meet its ongoing customer and business
counterparty obligations.
FORWARD LOOKING STATEMENTS
This news release includes
forward looking statements. Such statements are generally not
historical in nature, and specifically include statements about the
Company's plans, strategies, business prospects, changes and trends
in its business and the markets in which it operates. These
statements are made based upon management's current plans,
expectations, assumptions and beliefs concerning future events
impacting the Company and therefore involve a number of risks,
uncertainties and assumptions that could cause actual results to
differ materially from those expressed or implied in the
forward-looking statements, which speak only as of the date of this
news release. Consequently, no forward-looking statement can be
guaranteed. When considering these forward-looking statements, you
should keep in mind the risks described from time to time in the
Company's filings with the Securities and Exchange Commission,
including its Annual Report on Form 20-F (File No. 001-34667). The
Company undertakes no obligation to update any forward looking
statements to reflect events or circumstances after the date on
which such statement is made or to reflect the occurrence of
unanticipated events. New factors emerge from time to time, and it
is not possible for the Company to predict all of these factors.
Further, the Company cannot assess the impact of each such factor
on its business or the extent to which any factor, or combination
of factors, may cause actual results to be materially different
from those contained in any forward looking statement.
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: North Atlantic Drilling Ltd. via
Globenewswire
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