logo-loader

Rig firm SeaDrill shares sink as it warns of potential bankruptcy again

Last updated: 11:05 04 Apr 2017 EDT, First published: 06:05 04 Apr 2017 EDT

Ophir(rig)-(Resized)
SeaDrill is an offshore drill specalist

Offshore rig firm Seadrill Ltd (NYSE: SDRL) laid bare the problems besetting the global oil industry as it saw shares plummet today and warned again of potential bankruptcy.

Shares in New York sank over 40% to stand at $1 a pop.

The stock has already sunk 95% in the last three years as lower crude prices mean oil firms are simply cutting expenditures and therefore drilling.

In February this year it warned of potential Chapter 11 bankruptcy.

Today' sell off comes as the firm announced a $14 billion debt restructuring deal, which it said will likely result in shareholders receiving a "minimal recovery for their existing shares".

"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,” Seadrill told a statement.

The firm said its banks and lenders had agreed to extend restructuring talks by three months to July 31.

Seadrill is negotiating with more than 40 banks, including Norway's DNB, Sweden's Nordea and Denmark's Danske Bank, as well as bondholders and rig-building yards.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

4 hours, 52 minutes ago