Weatherford Starts Voluntary Chapter 11 Process



Weatherford Starts Voluntary Chapter 11 Process
Weatherford International plc, Ltd and LLC have initiated financial restructuring.

Weatherford International plc, Ltd and LLC revealed Monday that they have initiated financial restructuring by commencing voluntary cases under chapter 11 of the U.S. Bankruptcy Code to “effectuate” a "pre-packaged plan of reorganization”.

Financial restructuring implemented through the pre-packaged chapter 11 process will reduce Weatherford’s long-term debt by more than $5.8 billion, according to Weatherford. The proposed restructuring contemplates $1.75 billion in new financing and up to $1.25 billion in additional post-emergence financing.

Weatherford’s other entities and affiliates are not included in the chapter 11 cases. Weatherford expects to file Bermuda and Irish examinership proceedings collectively with the chapter 11 cases in the coming months. Company operations are continuing without interruption and with no expected impact on customers, vendors, partners or employees, Weatherford revealed.

Back in May, Weatherford announced that it had executed a restructuring support agreement with a group of its senior noteholders that collectively held, or controlled, approximately 62 percent of the company's senior unsecured notes.

In its fourth quarter results statement released back in February, Weatherford reported a net loss of $2.1 billion. During the same period in 2017, the company reported a net loss of $1.9 billion. Weatherford has not yet released financial results for 2019.

In April, Weatherford completed the sale of its surface data logging business to Excellence Logging for $50 million. During the same month the company completed the sale of its laboratory services business to a group led by CSL Capital Managementfor $206 million in cash. The company also completed the sale of several rigs during February and March.



WHAT DO YOU THINK?


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Mark Steiner  |  July 03, 2019
Weatherford was top-heavy in Houston while field offices in distant North Dakota (SLS office in Dickinson for one) barely scraped by with meager resources when rig counts were high in 2014. Field operations, away from corporate offices, suffer more than investors.
Levin  |  July 03, 2019
I hope that they will not steal shareholders with the Chapter 11
John Smith  |  July 03, 2019
Well a company that has not shown a profit, seems like in a year 5hey will be back for another bankruptcy
Sam Hillside  |  July 02, 2019
What does it mean for existing shareholders?
T.A.  |  July 02, 2019
I agree, Weatherford mislead shareholders all with in a couple of weeks. The ballet was sent to shareholder to vote on a reverse split. Just to keep long term investors put. Then, we were blindsided by this chapter 11 bankruptcy. This seemed planned and well thought out. So many people lost with this company. Its just sad to think about!
Kyle Peltier  |  July 02, 2019
They blatantly mislead shareholders saying they were going to try and do a reverse stock split to get back on the up and up with the NYSE then blindsided us all with this Chapter 11 notice where their grand plan is to screw over the current shareholders and leave current shareholders with 1% of the company, handing the other 99% over to the debt holders in the Chapter 11. Deplorable. Unethical, possibly worse. We shall see.
Kevin  |  July 02, 2019
How is that affecting shareholders?
Peter Stogmuller  |  July 02, 2019
Weatherford had a value of 20 to 30 Bill $. During the last 4 years, It created losses of 11 Bill $, instead of cutting the cost. There should have been an operational restructuring at first. There were over 200 bankruptcies in the USA, which got organized.