Source: Houston Chronicle
Source: Houston Chronicle
Oilfield service company Weatherford International moved forward with the second phase of its bankruptcy proceedings — filing in Ireland.
The company, which is incorporated in Ireland but has a large presence in Houston, filed for a type of bankruptcy protection known as a “scheme of arrangement” before an Irish court on Monday.
Under Irish law, the filing triggers a 100-day protection period from creditors while a judge reviews the company’s reorganization plan.
In a filing with the U.S. Securities and Exchange Commission, Weatherford stated that the company will continue normal operations while the Irish case remains pending. The company stated in the filing that it expects the scheme of arrangement in Ireland to mirror an approved Chapter 11 bankruptcy plan filed in the United States.
A bankruptcy judge in Houston issued a Sept. 11 order accepting Weatherford’s Chapter 11 reorganization plan in the United States.
The U.S. plan gives the struggling oilfield service company access to $600 million in credit and the ability to issue $1.6 billion of notes that will be used to pay down debt.
With roots going back to 1941, Weatherford had grown 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 with its principal offices in Houston, the struggling oilfield service company has not made a profit since the third quarter of 2014.
With a bleak outlook for demand during the rest of 2019, Weatherford has been supplementing its operations with cash from investing and financing activities.
