During the past year, the multinational oil and natural gas company Weatherford International has undertaken a company-wide transformation to improve its execution capabilities, lower the cost structure and create efficiencies in its operations
CEO Mark A. McCollum said, “Despite the challenging market dynamics our industry continues to face, I believe Weatherford’s transformation strategy has and will continue to make a positive impact for our organisation.”
The company recently announced that they have reached an agreement (‘Restructuring Support Agreement’ or ‘RSA’) with their important creditors to support a comprehensive financial restructuring.
This is a positive step for Weatherford’s long-term financial health and its customers. Once finalised, the financial restructuring will significantly reduce the company’s debt and provide ample liquidity to support operations.
Weatherford intends to implement the Restructuring Support Agreement through a ‘pre-packaged’ filing under Chapter 11 of the US Bankruptcy Code for the following entities outside of the Middle East—Weatherford International plc, Weatherford International Ltd. and Weatherford International LLC.
The CEO emphasises that this is a restructuring of the financial capitalisation balance sheet and not a liquidation of assets. To that end, Weatherford will continue to operate as usual during this financial restructuring. Operations will continue without interruption and the company will have the necessary liquidity to fulfil the ongoing obligations.
“We are continuing to fill customer orders in the ordinary course of business. Rest assured that we continue to operate our facilities and provide services in the same manner as always, and we remain fully committed to providing the same high-quality services and support you expect,” he added.
During the past year, the company has made meaningful progress on several vital initiatives that have improved operational efficiencies and, as a result, increased its ability to serve its customers.
“I am proud of all we have accomplished so far. With the RSA in place, we are committed to seeing our transformation plan through to completion, and we are confident in our ability to succeed. You can look forward to a Weatherford with improved liquidity and greater financial stability and the flexibility to make investments to enhance our platform while we continue to invest in the resources necessary to grow our business,” he stated.
“To Weatherford’s valued customers, vendors and partners across the Middle East: We are committed to our partnership with you. I thank you for your trust in Weatherford and look forward to maintaining an open dialogue with you as we move ahead. We are confident that these steps will allow Weatherford to continue its transformation journey and enhance our long-standing relationships across the Middle East for long-term success,” he concluded.
