Weatherford International received approval from the U.S. Bankruptcy Court for the Southern District of Texas for access to up to $1.5 billion of 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 records, Citibank will serve as administrative agent, issuing bank and collateral agent for the DIP financing.
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. 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.
Headquartered in Ireland, Weatherford is a multinational oilfield service company providing technology, and services to the oil and gas industry.