Huge mistake

truetype · Jul 3, 2018

I haven't followed this. Why are existing shareholders getting 2% of the post-BK company rather than 0%?

sle · Jul 3, 2018

truetype said:
I haven't followed this. Why are existing shareholders getting 2% of the post-BK company rather than 0%?
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Here is the snippet from the filing resolution:

On the Effective Date, the Company will have approximately 100 million New Common Shares outstanding. The New Common Shares will be allocated as set forth below, in accordance with provisions of the Plan and issued on the Effective Date:

14.25% of the New Common Shares issued to holders of unsecured claims against the Company and certain of its chapter 11 debtor affiliates;

23.75% of the New Common Shares issued to participants in the $200 million equity investment under the Plan;

54.625% of the New Common Shares issued to participants in the $880 million new secured notes investment under the Plan;

1.9% of the New Common Shares issued to holders of existing common equity interest in the Company as of the Effective Date, an effective exchange ratio of approximately 0.0037345 New Common Shares per each Existing Share, and

5.475% of the New Common Shares issued as a structuring fee to certain of the new money investors.

Trading in approximately 16 million New Common Shares issued to existing shareholders and holders of unsecured claims will commence on the NYSE one day after the Effective Date, on July 3, 2018, under the ticker symbol "SDRL". Additional shares may commence trading in the coming weeks after a resale registration statement on Form F-1 with respect to additional shares issued on the Effective Date to certain investors is declared effective by the Securities and Exchange Commission. The Existing Shares will continue to trade on both the NYSE and Oslo Stock Exchanges under the same ticker symbol through the close of trading on the Effective Date but thereafter such trading will be suspended and the shares will be cancelled in due course.
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giorgio993 · Jul 3, 2018

So do you guys thin i will be able to sell in the pre market? If yes, should i sell?

giorgio993 · Jul 3, 2018

Doesn’t matter. It says that the stock is temporarily untradeable

giorgio993 · Jul 3, 2018

m22au said:
No, this has been known for months.
http://www.seadrill.com/investor-relations/news.aspx
https://cases.primeclerk.com/seadrill/
https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001351413&owner=exclude&count=40

The only new "news" was the precise number of new SDRL shares that existing shareholders would receive.
But regardless of whether the number is 0.0037345, or if the number was 0.9999999, the dilution (1.9% of new company) remains the same as it has been known for months.

I suspect that you were probably unfamiliar with the chapter 11 filing before you bought SDRL stock.
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You’re right, I was unfamiliar with that. Can you please explain me what exactly is gonna happen to my shares?

truetype · Jul 3, 2018

giorgio993 said:
You’re right, I was unfamiliar with that. Can you please explain me what exactly is gonna happen to my shares?
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When issued, they'll appear in your account and you can sell if you wish. Till then, relax. This happens all the time with dreck stocks.

destriero · Jul 3, 2018

People ignored the conversion ratio and bid up the stock. What’s you cost-basis on the “old” shares that stopped trading yesterday?

giorgio993 · Jul 3, 2018

destriero said:
People ignored the conversion ratio and bid up the stock. What’s you cost-basis on the “old” shares that stopped trading yesterday?
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0.104

giorgio993 · Jul 3, 2018

Hi guys. So seadrill has released the new stock for avg $18 per share. My portfolio value is now around 500k. Is a mistake from the app right? The new stock is still not available for trade on the app

truetype · Jul 3, 2018

giorgio993 said:
Hi guys. So seadrill has released the new stock for avg $18 per share. My portfolio value is now around 500k. Is a mistake from the app right?
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Depends on what your value was prior. Your average cost, 10.4¢, translates into ~$28 for the new shares. So at the current level of ~18 you've lost about ⅓ the value. If you started with $750k, then $500k is about right.