Weatherford International has completed its financial restructuring and emerged from Chapter 11 bankruptcy protection.
The company entered into Chapter 11 at the beginning of July. The reorganization reduced overall debt by $6.2 billion (from $8.3 billion at filing). In return, the bondholders will own 94% of the restructured company. 5% has been set aside for a management incentive plan. Existing shareholders will own the other 1%.
Initially the company’s shares will trade over-the-counter. However it plans to list on the NYSE by the end of March, after it has reported its fourth quarter results and completes its fresh start accounting.
The company is the fourth largest oilfield service company but hasn’t made a profit since 2011
In November, Weatherford appointed Christian Garcia as its new CFO. He doesn’t start his new job until January 6, 2020.
In late November, William Macaulay, Chairman of the Board, died aged 74. He had been on the board since 1998 and had been Chair since March 2017 when Mark McCollum was appointed CEO. Thomas Bates has been appointed as the new Chairman.