Oilfield services provider Weatherford International Plc plans to file for Chapter 11 bankruptcy protection.
With operations in 90 countries and offices in Oklahoma City, the company has been saddled with a heavy debt load and years of losses. At one time, the company was valued at more than $50 billion but it never recovered from the oil price collapse in 2014.
In announcing the move to bankruptcy court, Weatherford management said they hope to reduce long-term debt by more than $5.8 billion through restructuring.
Weatherford’s shares plunged 61% to 14 cents in extended trading on Friday after the company reported the plan to seek protection from creditors and a wider quarterly loss.
For the period ended March 31, it posted a loss of $481 million, or 48 cents a share, compared with a loss of $245 million, or 25 cents, a year earlier. Revenue fell 5.4 percent to $1.35 billion.
Weatherford provides oil-and-gas well construction and completion, drilling and evaluation, and production services. It had about 26,000 employees at the end of March.
Weatherford reported total liabilities of $10.6 billion and assets of $6.52 billion on March 31. It has not reported a quarterly profit in four years.
