Houston Chronicle

Switzerland and Houston-based oilfield service company Weatherford International has emerged from Chapter 11 bankruptcy with roughly $10 billion of financial support.

Weatherford emerges from bankruptcy with $10 billion of support- oil and gas 360

Source: Houston Chronicle

In a Friday morning statement, Weatherford announced that the company emerged from Chapter 11 with $6.2 billion of outstanding funded debt, secured $2.6 billion in exit financing facilities, including a $450 million revolving credit facility, secured a $195 million letter of credit facility, and secured over $900 million of liquidity.

“This is a notable day for Weatherford as we have emerged as a stronger, more focused organization,” Weatherford CEO Mark McCollum said in a statement. “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.”

Currently traded as a penny stock, Weatherford expects to return to the New York Stock Exchange after the company reports its fourth quarter earnings, holds an investor call and completes the fresh-start accounting process. That process is expected to be completed by early March.

A post-bankruptcy board of directors has been appointed. Thomas Bates Jr. will serve as chairman supported by McCollum as well as John Glick, Neal Goldman, Gordon Hall, Jacqueline Mutschler, and Charles Sledge.

With roots in Texas going back to 1941, Weatherford grew to become the nation’s fourth-largest oil field services company but racked up $10 billion in debt along the way.

Headquartered in Switzerland but incorporated in Ireland and its principal offices in Houston, Weatherford has not made a profit since the third quarter of 2014.

The oilfield service company filed for Chapter 11 bankruptcy in Houston in July and filed for similar protections with an Irish court in September.


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