Seadrill extends $14 bln debt restructuring, warns of Chapter 11

OSLO, July 26 (Reuters) - Offshore drilling contractor Seadrill delayed the restructuring of its $14 billion in debt and liabilities on Wednesday and reiterated that Chapter 11 bankruptcy proceedings were likely.

Once the world's biggest offshore rig firm by market value, its shares have plunged 99 percent since a peak hit in September 2013.

The crown jewel in the business empire of billionaire of John Fredriksen, has struggled as energy firms have slashed investment due to a more than 50 percent fall on crude prices since 2014.

"(Seadrill) has reached an agreement with its bank group to extend the comprehensive restructuring plan negotiating period until Sept 12," the firm said in a statement, pushing back a previous July 31 deadline.

In April, Seadrill warned its shares would lose almost all of their value and its bonds would be hit as it was preparing for potential bankruptcy proceedings. It reiterated the statement on Wednesday.

"We continue to believe that implementation of a comprehensive restructuring plan will likely involve Chapter 11 proceedings," it said.

The company said such a plan would require a substantial impairment or conversion of its bonds, impairment and losses for other stakeholders, including shipyards, while shareholders are likely to receive minimal recovery for their existing shares. (Reporting by Ole Petter Skonnord and Gwladys Fouche; editing by Jason Neely)