Oslo-listed Seadrill has now got an extra month to push towards a restructuring deal for its $7.4bn debt pile.
The John Fredriksen-backed drillship and rig company said forbearance agreements have been extended with "certain creditors" regarding bank loans and bonds.
The new expiration date is 31 October.
Creditors have pledged not to exercise any voting rights or take any other action if the company defaults on interest payments that fell due in September.
"The purpose of the forbearance agreements continues to be to allow the company and its stakeholders more time to negotiate on the head terms of a comprehensive restructuring of its balance sheet," Seadrill said.
"Such a restructuring may involve the use of a court-supervised process."
Shareholders wiped out?
Seadrill had admitted in its second quarter results that shareholders could be wiped out in its latest restructuring through a debt for equity swap.
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.
This month, SFL Corp warned investors that Seadrill's forbearance period could expose the Fredriksen shipowning company to risk of enforcement actions.
The halt in interest payments could constitute an event of default under the leases and corresponding financing agreements for three drilling rigs that Seadrill has leased from SFL. There is no separate forbearance deal for these units.
SFL has provided "limited" guarantees for the rigs under the financing agreements, the shipowner said.
