Service & Supply | Oilfield Services | Bankruptcy / Restructure Update | Financial Trouble | Capital Markets

Weatherford to File for Bankruptcy

Share Print Bookmark    |    Friday,May 10,2019

Weatherford International will be filing for bankruptcy in the near future due to a lack of cash-on-hand, according to its recent 10K filing with the SEC.

Back in December 2018, the company fell out of NYSE compliance as its stock was nearly the $1.00 mark. That, combined with an increasing debt load, has likely led to the Chapter 11 move.

In its filing, Weatherford commented: "Our sources of available liquidity have included cash and cash equivalent balances, accounts receivable factoring, dispositions, and availability under committed lines of credit. In addition, we expect to continue to evaluate and enter into transactions to dispose of businesses or capital assets that no longer fit our long-term strategy. As set forth in the proposed RSA we expect to enter into with our Consenting Noteholders, we expect to reach an agreement to the principal terms of a proposed financial restructuring of the Company. The Transaction is contemplated to be implemented through a prepackaged Chapter 11 plan of reorganization to be implemented through the Cases. The RSA is expected to provide that the Company’s existing secured funded debt and unsecured revolving credit facility debt will be repaid in full in cash in connection with the Transaction. The proposed RSA is subject to completion of certain milestones for the progress of the Cases and termination rights in certain circumstances. Accordingly, no assurance can be given that the proposed RSA will be executed and the Transaction described in the RSA will be completed. However, negotiations are ongoing and are expected to be completed in the near term."

Shale Experts will update this story as it develops.