John Fredriksen-back Seadrill has said it is working with some of its noteholders to extinguish their debt in exchange for secured collateral.
The Norwegian-listed drillship and rig company said proposals and counter-proposals have been discussed since August.
As part of its deal with creditors under US Chapter 11 bankruptcy proceedings in 2018, Seadrill issued $880m in new secured notes (NSNs) held in a company called NSNCo.
