Along with an earnings report out now after an earlier postponement, Weatherford (NYSE:WFT) says in its 10-Q filing that it expects to file for Chapter 11 bankruptcy.
Shares are down 12.5% after hours.
It's hoping to reach a deal with noteholders for a prepackaged plan, it says; the plan calls for two debtor-in-possession facilities: a revolver of up to $750M and a loan facility of up to $1B backstopped by consenting noteholders.
Cash flow was negatively impacted by a number of factors, the company says, including an uncertain oil price environment, weak energy sector conditions mainly in Canada, season and weather-related disruptions and an unfavorable forex impact in Argentina.