Weatherford International plc, Weatherford International Ltd. and Weatherford International, LLC, one of the largest multinational oilfield service companies providing innovative solutions, technology and services to the oil and gas industry, announced that the Company has completed a successful first day hearing in the U.S. Bankruptcy Court for the Southern District of Texas related to the voluntary Chapter 11 petitions filed on July 1, 2019. Notably, the Court granted Weatherford interim approval to access up to $1.5 billion of debtor-in-possession (“DIP”) financing with the request for approval on a final basis (including an additional $250 million of financing) to be heard on August 1, 2019.
According to court documents, Citibank is serving as administrative agent for the DIP loan.
This financing, combined with access to the cash generated by the Company’s ongoing operations, is available to meet the Company’s day-to-day needs during the Chapter 11 cases.
In addition to the approved financing, Weatherford received approval to continue its customer programs, to maintain its insurance and insurance-related items and to continue to utilize its existing cash management system. The Court also granted additional procedural motion filed by the Company. Employee wages and benefits are unaffected by the filings and will continue to be paid in the ordinary course. The Court’s approval of the Company’s first day motions coupled with the approval of the proposed DIP financing will allow Weatherford to operate in the ordinary course during the pendency of the cases.
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.