Oslo-listed Seadrill has given itself a little extra time to make progress on its latest restructuring deal in weak offshore markets.
The John Fredriksen-backed drillship and rig company said forbearance agreements have been signed with "certain creditors" regarding bank loans and bonds.
The creditors will not exercise any voting rights or take any other action if the company defaults on interest payments due this month.
But the grace period only lasts to 29 September.
And no such deal is yet in place for any defaults arising from leasing agreements for three jack-up rigs, West Hercules, West Linus and West Taurus.
Seadrill warned that a non-payment of interest could result in enforcement of a cross-default under these contracts, despite the forbearance deal regarding other debt.
The idea of the agreement is to give the company more time to negotiate a "comprehensive restructuring" of its balance sheet.
Court restructuring possible
Seadrill said again that this may involve a court-supervised process.
"The company continues to evaluate capital structure proposals from its financial stakeholders," Seadrill 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 had admitted in its second quarter results that shareholders could be wiped out in its latest restructuring. At the end of June it had $7.4bn of debt.
The company delisted in New York in June and moved to the Oslo over the counter (OTC) market as it aimed for a second refinancing in two years as losses mounted.
In 2018, Seadrill emerged from a Chapter 11 restructuring. Fredriksen stepped down as chairman in November last year, retaining a 27% stake.
Cash enough for now
Total cash stood at $1bn at the end of the second quarter.
Seadrill believes it has enough liquidity to complete the restructuring process. Business continues as usual in the meantime.
The second quarter net loss was $181m, against $1.56bn in the first quarter after a big fleet impairment.
This week, the company took control of Asia Offshore Drilling after buying out the stake controlled by Mermaid Maritime.
Seadrill confirmed it had paid $31m for the outstanding 33.76% of Asia Offshore it did not already own.
