How to track Seadrill (SDRL) Reorganization in Windows Quicken 2017?

James J

Seadrill Ltd (SDRL) emerged from chapter 11 bankruptcy just a couple days ago.  Part of the resulting reorganization has caused the number of outstanding share to be drastically reduced, from 504 million shares to just 100 million according to Motley Fool and Seeking Alpha. 

Has anyone already processed this in Quicken?

Tom Young

I haven't looked deeply into this but based on the Motley Fool write-up it would appear that what you've suffered is essentially a reverse split of 0.0037345 shares for 1.

That same figure is used here:

http://www.seadrill.com/investor-relations/news/pr-story.aspx?ResultPageURL=http://cws.huginonline.c...

q_lurker

A)  I am not a shareholder and have no dog in this show.  These are my guessed opinions only.  I am not a financial pro ... yada, yada.

  From the cited press release: 

"The Company has received approval to list its new common shares with the new CUSIP number G7998G 106 (the "New Common Shares") on the New York Stock Exchange (the "NYSE") under the same NYSE ticker symbol "SDRL" as the Company's existing common shares (with the CUSIP G7945E 105) (the "Existing Shares").  Subject to the relevant approvals, the Company also intends to have its equity listed on the Oslo Stock Exchange (ISIN BMG7998G1069)."

So in Quicken, I would change the name of the old existing SeaDrill to something like SeaDrill (Old) and I would change its ticker to SDRL(old).  In changing the ticker, I would opt to copy old prices to new ticker and to delete the prices under the old ticker.  If you had been downloading that holding from a brokerage, I would uncheck the box about Matched to online security (Edit Security Details)

I would then create a new company (SeaDrill - New, or similar) and assign its ticker as SDRL.

I would then try to Corporate Acquisition whereby New acquires Old at the 0.0037345 share ratio.  Check that the subsequent share holdings are correct.  I did not read closely enough, but I expect any fractional shares would not be issued.  After the Corp Acquisition, sell any net fractional share for the cash-in-lieu amount you did (or will) receive.  

All that would be after making a back up and before downloading (or acceopting) relevant transactions from the brokerage.

All that represents about 10 minutes of thought.  You should apply more than that.   

James J

q_lurker