John Fredriksen-backed Seadrill is now at the mercy of creditors following the end of a forbearance agreement renewed in November.
The Oslo-listed drillship and rig company said on Tuesday that banks and leaseholders were free to take action against the group over any defaults that may arise from Seadrill making no loan or charter payments.
The forbearance deal ended on Monday.
In November, Fredriksen-backed shipowning company SFL Corp stepped into refinancing talks.
SFL took over the debt on two of its three drilling rigs leased to Seadrill.
Seadrill has the three units on bareboat charters that netted SFL $24.4m in the third quarter.
But SFL had not received any hire payment in the fourth quarter as of 12 November.
"The company continues to maintain its readiness to carry out a comprehensive restructuring of its balance sheet. Such a restructuring may involve the use of a court-supervised process," Seadrill said.
Talks ongoing
"Constructive discussions" continue with financial stakeholders in relation to potential further forbearances and long-term refinancing, the company added.
"Whilst no agreement has been reached at this point it is expected that potential solutions will lead to significant equitisation of debt which is likely to result in minimal or no recovery for current shareholders," Seadrill warned.
Earlier this month, US-listed drillship owner Seadrill Partners filed for a debt reorganisation under Chapter 11 of the US bankruptcy code.
The company, a spin-off of Seadrill, said it had been in talks about a restructuring of its balance sheet with an ad-hoc group of lenders representing its term loan B credit facility.
In consultation with these banks, Seadrill Partners filed voluntary petitions to "preserve value and continue the operation and marketing its assets".
Seadrill itself emerged from a Chapter 11 restructuring in 2018. The company has reported debt of $7.4bn in weak oil and gas markets.
Fredriksen stepped down as Seadrill chairman in November last year, retaining a 27% stake.
