(Reuters) - Offshore drilling rig contractor Seadrill has already prompted interest from at least one potential buyer in the first week of its bankruptcy, despite its stated desire to keep the company intact as it dives into what one lawyer said is likely to be a "contentious" case.

A lawyer for Dolphin Drilling, Stephen Zide of Kramer Levin Naftalis & Frankel, announced Dolphin's interest in certain assets on Friday during Seadrill's first appearance before U.S. Bankruptcy Judge David Jones in Houston since filing its second bankruptcy in four years on Wednesday. Seadrill, represented by Kirkland & Ellis, blamed its troubles on the sustained downturn in the oil and gas market since it emerged from its last bankruptcy in 2018, which was further exacerbated by the COVID-19 pandemic.

The company, which is based in London and is controlled by Norwegian-born billionaire John Fredriksen, has $5.6 billion in secured debt. It has spent the last few months negotiating with separate groups of lenders, one of which is represented by White & Case and the other by Weil Gotshal & Manges. In December, the Weil-represented lender group, which holds $1.2 billion in debt and is known as the RigCo lenders, swept up about $100 million in cash from one of Seadrill's accounts to pay down some of the outstanding debt. Seadrill attorney Anup Sathy of Kirkland said the RigCo lenders "probably" had the right to take the cash but that the move was still concerning for the company.

Seadrill was nearing a restructuring support agreement with the White & Case group, which holds $2 billion in debt and is known as the "coordinating committee of secured lenders," before filing for bankruptcy. The company instead decided to hold off on the deal in part to ensure an "even playing field" with the RigCo lenders, who opposed the restructuring proposal and are advocating for a sale of the company rather than a standalone reorganization.

"I expect, candidly, that this will be a more contentious case [than the prior bankruptcy]," Sathy told Jones.

No details of Dolphin's letter of interest were disclosed during the hearing, but Zide said that if Seadrill does decide to pursue a potential sale, Dolphin is "very interested in participating."

Ross Kwasteniet of Kirkland said Seadrill has not yet fully reviewed the proposal, which arrived early Friday morning.

As a variety of creditor groups staked their positions on Friday, Jones approved a series of motions that will allow the company to continue operating and paying employees during the bankruptcy. Seadrill has $550 million in cash on hand to keep the company afloat.

Seadrill emerged from its prior bankruptcy with billions of dollars shed from its debt stack and $1 billion new investments. The company controls 54 drilling rigs and employs around 3,000 people. It follows several competitors into bankruptcy since the pandemic hit, including Pacific Drilling, Noble Corp. and Valaris plc.

The case is In re Seadrill Limited, U.S. Bankruptcy Court, Southern District of Texas, No. 21-30427.

For Seadrill: Anup Sathy, Ross Kwasteniet, Brad Weiland, Spencer Winters and Christopher Marcus of Kirkland & Ellis and Matthew Cavenaugh, Jennifer Wertz, Vienna Anaya and Victoria Argeroplos of Jackson Walker

For the coordinating committee of secured lenders: Scott Greissman, Jason Zakia and Phil Abelson of White & Case and Jason Brookner of Gray Reed

For the RigCo lenders: Alfredo Perez, Matt Barr, Sunny Singh, David Cohen and Paul Genender of Weil Gotshal & Manges