Seadrill, the offshore driller controlled by the billionaire John Fredriksen, plunged for a second day amid speculation the company will be forced to file for bankruptcy as talks with investors and creditors drag on.
The stock slumped 1.69 Norwegian kroner, or 20 per cent, to 7 kroner as of 9:44am in Oslo on Wednesday. It slid 38 per cent on Tuesday, closing at a record low.
Seadrill on Tuesday reached an agreement to extend the maturity on loans totaling US$2.9 billion, pushing back a deadline for the restructuring to July 31 from the end of this month. Even so, a restructuring deal will probably include “schemes of arrangement or chapter 11 proceedings”, the company said. Mr Fredriksen said it was not certain that Chapter 11 would be the final outcome, although bondholders and shareholders will face dilution.
The company is in talks to restructure the heaviest debt-load in the oil-rig industry, which became difficult to handle after oil prices started to tumble in 2014. With net interest-bearing debt of $8.9bn at the end of 2016, the former top company of Mr Fredriksen’s business empire has been particularly exposed as oil companies slashed spending, reducing demand for drilling even as new rigs ordered during the boom years added to the oversupply.
* Bloomberg
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The Energy Research Centre
Founded 50 years ago as a nuclear research institute, scientists at the centre believed nuclear would be the “solution for everything”.
Although they still do, they discovered in 1955 that the Netherlands had a lot of natural gas. “We still had the idea that, by 2000, it would all be nuclear,” said Harm Jeeninga, director of business and programme development at the centre.
"In the 1990s, we found out about global warming so we focused on energy savings and tackling the greenhouse gas effect.”
The energy centre’s research focuses on biomass, energy efficiency, the environment, wind and solar, as well as energy engineering and socio-economic research.
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
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The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
