Seadrill Partners Cuts Tether From Parent Company, Shares Spike

Shares of Seadrill Partners (NYSE: SDLP) are up 19% as of 10:30 a.m. EDT today after the company announced several credit resolutions related to parent company Seadrill Limited (NYSE: SDRL) and reinstated its distribution to shareholders.

Seadrill is sinking. The company has some credit facilities coming due for new rigs currently under construction, and it has so far struggled to find anyone willing to refinance those short-term borrowings. The company's debt load and the uncertain picture of the offshore rig market has led management to believe going through Chapter 11 proceedings is inevitable.

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Source: Fool.com