Seadrill Ltd (NYSE: SDRL) is having an overwhelmingly rough start to the trading session this morning, and for good reason. The company announced that it plans to file Chapter 11 bankruptcy. Of course, this led to fear among investors, sending the stock tumbling down and prompting our partners at Trade Ideas to send the alert. At the moment (9:20), SDRL is trading at $0.20 per share after a loss of $0.07 per share (25.30%) thus far today.
SDRL Takes A Dive On Bankruptcy News
As mentioned above, Seadrill isn't having the best of days in the market today. In fact, the company is falling hard after announcing that it plans to begin Chapter 11 debt restructuring in the coming weeks. This comes after showing investors a $100 million second quarter loss. Since the crash in oil prices back in 2014, the company has struggled to find its footing, now, it is expecting that debt negotiations will involve bankruptcy, which will take place on or before September 12. In a statement, Anton Dibowitz, CEO and President at SDRL, had the following to offer:
“Our primary objective at the moment is concluding final negotiations on our comprehensive restructuring plan, which is at an advanced stage and likely to be implemented via Chapter 11 proceedings on or before 12th September 2017. Our business execution remains unaffected by these efforts as demonstrated by continued delivery of excellent safety and fleet uptime. Although the market continues to be challenging, continued operation execution and strong customer relationships has enabled us to re-contract a number of units during the quarter.”
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on SDRL. In particular, we're interested in following the ongoing restructuring plans and potential bankruptcy on the horizon. We'll also be watching to see how the company bounces back from what could be a devastating move. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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