Weatherford has appointed Keith Jennings as its new CFO, replacing Christian Garcia, who resigned in June after six months.
Mr Jennings joins from Calumet Specialty Products Partners, where he was CFO. He only joined that company in October 2019. Prior to that, he was at Eastman Kodak. He also spent seven years as VP and Treasurer at Cameron International, leaving a few months after its takeover by Schlumberger.
Calumet is based in Indianapolis, so Weatherford is giving Mr Jennings a relocation allowance of $150,000. His base salary will be $500,000 and he will receive another $500,000 as a sign-on bonus. The sign-on bonus will be repayable if Mr Jennings leaves within a year.
Weatherford filed for bankruptcy in July 2019 and emerged on December 13, 2019. Debt was reduced from $8.0 billion to $2.2 billion with the bondholders owning 94% of the equity of the newly reorganized company. Shortly after emerging from bankruptcy, the company took out a $450 million asset-based credit line.
As part of its efforts to shore up its finances, last week Weatherford secured an agreement with the noteholders that they would buy $500 million of new notes due 2024 at 8.75% interest. In return, the company would use those proceeds to pay off the credit agreement that was only entered into in December 2019.
This helps alleviate a problem facing Weatherford since the pandemic. Its international operations have proved more resilient than the domestic markets, but its borrowing base is weighted towards North America. The company faced a declining collateral base but Wells Fargo and Deutsche Bank, the agents for the credit facility, refused to discuss any material covenant modifications.