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Weatherford International Gets Nod to Access $1.5B DIP Financing From Citibank

July 08, 2019, 08:50 AM
Filed Under: Bankruptcy

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.

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