May 13 (Reuters) - Oilfield services provider Weatherford International Plc said on Monday it would soon have debtor-in-possession financing that would allow it to file a plan for Chapter 11 bankruptcy and emerge quickly with little debt.
The company said it expects to enter into two processes of debtor-in-possession financing, including a revolving credit facility of up to $750 million provided by banks or other lenders and a loan facility of up to $1 billion.
As part of the restructuring plan, all its existing unsecured notes will be exchanged for 99% of shares of the reorganized company and $1.25 billion of new senior unsecured notes, as part of its Chapter 11 bankruptcy.
The new unsecured notes will have a maturity period of seven years, it said in an SEC filing.
Rising losses had left Weatherford without the ability to roll-over its debt and had sparked the departure of key employees needed to execute organizational changes, it said on Friday.
Weatherford, which disclosed plans to seek bankruptcy protection from creditors on Friday citing $10.6 billion in liabilities and $6.52 billion in assets, said existing secured funded debt and unsecured revolving credit facility debt will be repaid full in cash.
According to Monday’s filing, Weatherford’s existing equity will be exchanged for 1% of new stock and three-year warrants to buy 10% of the new stock. (Reporting by Gary McWilliams in Houston and Debroop Roy in Bengaluru; Editing by Arun Koyyur)