Oilfield services giant Weatherford International plc has emerged from voluntary bankruptcy in stronger financial shape after eliminating $6.2 billion of outstanding funded debt.
The nation’s fourth largest oilfield services provider, whose principal operations are based in Houston, in May executed a restructuring support agreement with a group of its senior noteholders to prepare for a prepackaged Chapter 11 filing, which was done in early July.
In addition to eliminating $6.2 billion in debt, Weatherford has secured $2.6 billion in exit financing facilities, including a $450 million revolving credit facility, as well as a $195 million letter of credit facility and more than $900 million of liquidity.
The company has emerged “as a stronger, more focused organization,” said CEO Mark A. McCollum. “With renewed balance sheet strength, a strong customer base and a portfolio designed to meet the needs of our industry, we believe we are well positioned to build on our reputation as a leader in the oilfield services sector and to capitalize on the growth opportunities ahead.”
Weatherford expects its newly issued ordinary shares initially would resume trading on the OTC Markets and then transition to again trade on the New York Stock Exchange (NYSE). Moving to the NYSE is expected in early March after the company reports 4Q2019 results and completes a fresh-start accounting process.
The board has been reconfigured in conjunction with the restructuring. In addition to McCollum, Thomas R. Bates Jr. was appointed chairman. Others appointed to the board were John F. Glick, Neal P. Goldman, Gordon T. Hall, Jacqueline Mutschler and Charles M. Sledge.
“The knowledge and engagement of our new board of directors will better enable us to deliver on the opportunities in front of us and remain focused on achieving objectives that are in the best interest of all the company’s stakeholders,” McCollum said.
Weatherford was represented in the recapitalization by Latham & Watkins LLP, Matheson, Hunton Andrews Kurth LLP, Lazard Freres & Co. LLC, Alvarez & Marsal and Conyers Dill & Pearman.