Weatherford Starts Voluntary Chapter 11 Process
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.
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