September 30, 2019
Weatherford International appears to be nearing the final stages of its bankruptcy proceedings, which it entered into in early July.
Even then, the company has already announced in late June the plan for a complex financial restructuring, and in July started voluntary cases under Chapter 11 of the U.S. Bankruptcy Code aimed at completing its “pre-packaged” Plan of Reorganization as soon as possible.
Last week Weatherford went into examinership in Ireland to restructure its $8.35bn in debt, under terms of which major creditors will assume 99% ownership and issue a new loan of more than $2 billion, with existing shareholders owning 1% of the company when it emerges from proceedings, according to The Times of London.
Weatherford has also been undergoing insolvency proceedings in Bermuda, which along with Irish court approval, are the final steps in the reorganization process.
The company won Houston bankruptcy court approval for the American portion of its reorganization plan on September 11th.
The company’s headquarters has been in Houston, with a tax-residency in Switzerland and registered office in Ireland.
The company was given an early-August shot of $250 million from one of its creditors to remain operating during these proceedings