Continental Focus, International Reach

Weatherford Files Chapter 11

Thursday, July 4, 2019

Weatherford International initiated its previously-announced financial restructuring by commencing voluntary cases under chapter 11 of the U.S. Bankruptcy Code to effectuate its ‘pre-packaged’ Plan of Reorganization.

The company’s other entities and affiliates are not included in the Chapter 11 Cases.

Weatherford also expects to file Bermuda and Irish examinership proceedings in the coming months. The comprehensive financial restructuring would significantly reduce the Company’s long-term debt and related interest costs, provide access to additional financing and establish a more sustainable capital structure.

The company has received commitments from lenders for $1.75 billion of debtor-in-possession financing (the DIP Facility). The proceeds of the DIP Facility will be available to fund Weatherford’s capital needs throughout the Cases.

Additionally, upon exit from bankruptcy the company will have access to additional financing in the form of (a) an undrawn first lien exit revolving credit facility in the principal amount of up to $1.0 billion, and (b) up to $1.25 billion of new tranche A senior unsecured notes with a five-year maturity. In addition, on emergence from bankruptcy the company will issue $1.25 billion of new tranche B senior unsecured notes with a seven-year maturity to holders of the company’s existing unsecured notes.

Weatherford has filed ‘first day’ motions to obtain the requisite court authority for it to continue operating its businesses and facilities in the ordinary course without disruption to its customers, vendors, partners or employees. It is working to complete all necessary milestones and will disclose details regarding planned emergence in due course.

Lazard is acting as financial advisor for the Company, Latham & Watkins, LLP as legal counsel, and Alvarez & Marsal as restructuring advisor. Evercore is acting as financial advisor for the group of the Company’s senior noteholders and Akin Gump Strauss Hauer & Feld LLP as legal counsel.