Weathford Files for Chapter 11 Cases
Weatherford International Ltd, Weatherford International plc., and Weatherford International, LLC, introduced that the Firm has begun with its previously-announced monetary restructuring by commencing spontaneous cases under Chapter 11 of the U.S. Chapter Code to effectuate its “pre-packaged” Plan BAof Reorganization. The Firm’s different entities and associates usually are not included in the Chapter 11 Circumstances. Weatherford further expects to file Bermuda and Irish examinership proceedings in a few following months. The tremendous financial restructuring would considerably reduce the Firm’s future debt and related interest prices, offer access to further financing and form a more sustainable capital plan.
The Company has received promises from lenders for $1.75 billion of debtor-in-possession financing (the “DIP Facility”). The proceeds of the DIP Facility will be out there to fund the Company’s working capital needs all through the Cases. Moreover, upon exit from chapter the Company will have access to further financing in the form of (a) an undrawn first lien exits twirling credit facility within the principal amount of as much as $1.0 billion, and (b) as much as $1.25 billion of new portion A senior unsecured cash with a five-year maturity. As well as, on emergence from chapter the Company will issue $1.25 billion of latest tranche B top unsecured notes with a seven-year maturity to holders of the Company’s existing unsecured notes.
The Company has submitted “first-day” motions to acquire the requisite court authority for the Firm to proceed operating its companies and facilities within the ordinary course without disruption to its clients, distributors, companions or employees. The Firm is working on completing all crucial milestones and will disclose particulars regarding planned emergence sooner or later.
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