Thread regarding Weatherford International Ltd. layoffs

how about entering Ch11, "restructuring the debt" and starting over again? Is not this a better option?

That works as long as you can get vendors to give you equipment and stuff on net30 or whatever.

When vendors start demanding cash up front that kills your ability to generate revenue and subsequently service the debt. If WFT survives 3 months below $1 I will personally invest because because it's clear the loans won't ever get called in.

The high debt load is what's keeping us afloat. No lenders will call in the loans as they will get nothing for their investment. Other companies probably won't be interested in trying to buy us out (hostile or friendly) as they wouldn't want to take on our debt load, and the shareholders probably wouldn't approve a friendly takeover the the price offered for each share will be less than what they paid for it.

The way I see it, we will most likely get left alone until things turn around (either the market, which will carry us with it, or the company itself if they can get their act together).

It's just like the banks not kicking out house buyers who are underwater on their mortgage and can't make the payments. They certainly don't want to own the house and are happy to just the the homeowner pay whatever they can each month.

30 days under $1 starts the process of delisting, although technically you have time to “remedy” the issue. Assuming you’re delisted, you would trade over the counter but the stock still exists.

Bankruptcy is a completely different story and considering the number of countries, etc. will be complicated. All of the major debt is in Bermuda so how does that impact a WFT entity in another country that makes money, who knows. Countries that don’t make money and always borrow from the pot would also be screwed. They will need to pay a lot of money to lawyers who will need to figure all of that out.

Decades of growth built on bank loans.

Now the loans need paying back but there's not enough revenue to pay them. So you try to defer and renegotiate the loans.

Eventually though people stop giving you credit and equipment upfront.

That's where WFT stands today. Money's dried up, bills to pay and not enough revenue to pay them.