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Weatherford announces confirmation Of Plan Of Reorganisation


15 Sep 2019

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Weatherford International has announced that the United States Bankruptcy Court for the Southern District of Texas has issued an order confirming Weatherford's Second Amended Joint Prepackaged Plan of Reorganisation of Weatherford International and its Affiliate Debtors under Chapter 11 of the United States Bankruptcy Code. The Company expects that the effective date of the Plan will occur before year-end.

The following is a summary of the material terms of the Plan. This summary highlights only certain substantive provisions of the Plan and is not intended to be a complete description of the Plan.

The Plan of Reorganisation

The Plan contemplates the following treatment of claims:

  • Claims under the Company's secured term loan facility and 364-day revolving credit facility were paid in full in cash from borrowings under a debtor-in-possession credit agreement (the 'DIP Facility');
  • Claims under the unsecured revolving credit facility shall be paid in full in cash on the Effective Date;
  • Holders of the Company's existing senior unsecured notes shall receive their pro rata share of: (i) 99.0% of the newly issued common stock of the post-emergence Company, subject to dilution on account of the equity issued pursuant to a management incentive plan and the New Common Stock issuable in respect of the Warrants (as defined below); and (ii) $500 million principal amount of new unsecured notes with a maturity of five years (the "Exit Notes").  In addition, holders of Senior Notes will receive subscription rights to purchase their pro rata share of up to $1.6 billion in Exit Notes for cash (such notes, the 'Rights Offering Notes');
  • Claims under the DIP Facility shall be paid in full in cash on the Effective Date through the Company's entry into a first lien exit revolving credit facility in a principal amount of at least $600 million and issuance of up to $1.6 billion of the Rights Offering Notes, the issuance of which will be fully backstopped by certain holders of Senior Notes;
  • Holders of general unsecured claims shall be paid in the ordinary course of business; and
  • Holders of the Company's existing ordinary shares will receive their pro rata share of:  (i) 1.0% of the New Common Stock, subject to dilution on account of the equity issued pursuant to a management incentive plan and the New Common Stock issuable in respect of the Warrants; and (ii) four-year warrants for 10.0% of the New Common Stock, subject to dilution on account of the equity issued pursuant to a management incentive plan, with a strike price to be set at an equity value at which the holders of Senior Notes would receive a recovery equal to par as of the date of the commencement of the Chapter 11 Cases in respect of the Senior Notes and all other general unsecured claims that are pari passu with the Senior Notes.

Original article link

Source: Weatherford International





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