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Written by 3:41 pm Blog, Current Investigations

SeaDrill LTD Files for Chapter 11 Bankruptcy Protection

SeaDrill LTD

Update on SeaDrill LTD

Did you lose money investing in SeaDrill LTD at the recommendation of your broker?  If so, The White Law Group may be able to help you recover your losses by filing a FINRA Arbitration Claim against the brokerage firm that sold you the investment.

SeaDrill LTD is a deepwater drilling contractor which provides drilling services to the oil and gas industry. It is incorporated in Bermuda and managed from London.

According to reports, the company filed for bankruptcy protection this week after working out a deal with almost all its senior lenders to inject $1 billion of new money into the company.

The company spent more than 18 months trying to strike an agreement with creditors to restructure the industry’s biggest debt-load after crude’s collapse curbed demand for Seadrill’s services. Earlier this year the company gave itself a deadline of Sept. 12 to file a Chapter 11 reorganization case in U.S. Bankruptcy Court, just three days before $843 million of bonds mature.

Seadrill was once valued at $23.7 billion but with the decline in oil prices, the company is now worth about $398 million with liabilities that exceed its current assets by nearly double.

Current shareholders may end up with as little as 3 to 4 cents a share, while unsecured bondholders may see a direct recovery for unsecured claims of about 6 percent if they don’t participate in new secured debt, analysts at Clarksons Platou Securities AS wrote in a note.

Investigating Potential Claims Involving SeaDrill LTD

The White Law Group is investigating the liability that brokerage firms may have for recommending SeaDrill LTD. Unfortunately for many investors they did not fully understand the risks of energy investments like SeaDrill LTD.  The investment’s performance is directly tied to the price of oil which dropped dramatically beginning in 2014.

Brokerage firms are required to perform adequate due diligence to evaluate whether the investments they recommend are suitable in light of the client’s age, net worth, risk tolerance, investment experience, and investment objectives.

Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.  The White Law Group believes certain financial advisors have been recommending high risk energy investments improperly to income seeking retired investors – focusing on the income potential of the investments while downplaying or ignoring the risks.

Free Consultation

If you suffered losses investing in SeaDrill LTD at the recommendation of your financial advisor and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, please visit https://whitesecuritieslaw.com.

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