(Bloomberg) --
Offshore contractor Seadrill Ltd., owned by billionaire John Fredriksen, is proposing a debt write-off of just over $4.8 billion, according to Finansavisen.
The proposal, sent to the U.S. bankruptcy court in Texas ahead of the Easter holidays, would let Seadrill's lenders take over 99% of the company and leave current shareholders with the remaining 1%, the paper said.
According to Finansavisen, the proposed write-off will help Seadrill cut its debt by more than 86.5% to $750 million.
As part of the deal, Seadrill is also suggesting an injection of new capital of $300 million. Lenders shall have a preferential right to subscribe for the entire amount, Seadrill's chairman Glen Ole Rødland told the newspaper.
Read More: Seadrill's Lenders at Odds Over How to Fix Drilling Giant
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