Categories: world

Weatherford shares are plunging to file for Chapter 11 bankruptcy

Weatherford International Ltd. WFT, -3.81% shares were drawn in the extended session on Friday after the oil trap said it planned to file for Chapter 11 bankruptcy protection. Weatherford shares fell 67% after hours, following a 3.8% decline to close the regular cents of 37 cents. In a Friday's Securities and Exchange Commission application, Weatherford said the market outlook for our company and the energy sector continues to be limited due to the uncertainty of expected business, especially in North America, including lower costs for many of our customers, resulting in lower than expected benefits from our transformation. "Because of these uncertainties and tight access to credit, the company believes that it will not be able to generate sufficient liquidity to serve all debt and other obligations or to comply with its debt obligations at any time within the next twelve months" and that these "conditions" are causing a great deal doubt about our ability to continue as a regular business. "In February, Weatherford's share received an increase following a positive cash flow report. Has broken news sent to your inbox. Subscribe to MarketWatch's free bulletin emails. Sign up here.

Weatherford International Ltd.

WFT, -3.81%

shares were drawn in the extended session on Friday after the oil trap said it planned to file for Chapter 11 bankruptcy protection. Weatherford shares fell 67% after hours, following a 3.8% decline to close the regular cents of 37 cents. In a Friday’s Securities and Exchange Commission application, Weatherford said the market outlook for our company and the energy sector continues to be limited due to the uncertainty of expected business, especially in North America, including lower costs for many of our customers, resulting in lower than expected benefits from our transformation. “Because of these uncertainties and tight access to credit, the company believes that it will not be able to generate sufficient liquidity to serve all debt and other obligations or to comply with its debt obligations at any time within the next twelve months” and that these “conditions” are causing a great deal doubt about our ability to continue as a regular business. “In February, Weatherford’s share received an increase following a positive cash flow report.

Has broken news sent to your inbox. Subscribe to MarketWatch’s free bulletin emails. Sign up here.

Share
Published by
Faela