Oilfield services company Weatherford International Plc said Monday the U.S. Bankruptcy Court for the Southern District of Texas had granted the company final approval for its debtor-in-possession (Dip) financing, Kallanish Energy reports.
The package includes access to $250 million not previously included in the interim court approval. This additional financing, combined with the existing Dip facility and access to the cash generated by the company’s ongoing operations, is available to meet the company’s day-to-day needs.
The oilfield services firm, founded in 1941, had grown to become the U.S.’s fourth-largest oilfield services provider and a worldwide player. When it filed its Chapter 11 paperwork on July 1, It reported to U.S. Bankruptcy Court in Houston it had as much as $10 billion in assets and liabilities, including $7.5 billion in unsecured bond debt.
Weatherford said at that time nearly 80% of its creditors are backing Weatherford’s reorganization plan, up from 62% when bankruptcy was first publicly announced in mid-May. The company has not made a profit since the third quarter of 2014.
Weatherford’s reorganization plan allows the company to shed $5.8 billion of its $7.6 billion in long-term debt — in exchange for 99% of the stock in the reorganized company.
Weatherford 20 years ago began a buying binge, paying for many of the deals with debt. The company had difficulty integrating the new acquisitions, and problems only grew when the market plunged in 2014.
Lazard is acting as financial advisor for the company, Latham & Watkins as legal counsel, and Alvarez & Marsal as restructuring advisor.
Evercore is serving as financial advisor for the group of the company’s senior noteholders and Akin Gump Strauss Hauer & Feld as legal counsel.
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