By Alexander Saeedy
Judge David Jones of the US Bankruptcy Court of Southern Texas on Tuesday said he would sign an order confirming Seadrill Ltd.'s proposed Chapter 11 plan of reorganization.
The plan garnered the support of nearly all creditors, lawyers for Seadrill said in court, and foresees the offshore drilling contractor equitizing almost $5 billion of debt and exiting bankruptcy with approximately $900 million of debt.
Seadrill's lawyers also announced that the company had reached an agreement with Strategic Value Partners, one of the company's creditors, over objections to how much compensation is being offered to certain Seadrill lenders in exchange for their backstop of new Seadrill borrowings under the Chapter 11 plan.
Write to Alexander Saeedy at alexander.saeedy@wsj.com