Thread regarding Weatherford International Ltd. layoffs


Weatherford Going Bankrupt without a doubt !

  • Fact - Total Assets = 12.013 billion. But that includes 2.346 billion Goodwill. Which is the amount they overpaid for all the companies they bought over the years.

  • Fact - Total Liabilities = 10.685 billion.

So total assets are actually 9.667 billion. And that is being generous. Because I know for a fact that all the company assets are cannibalized to keep the field assets working. If they wrote off all the bad assets they would probably lose 30% of the asset value. And Inventory has a huge portion of scrap, that has been sitting in yards rusting, because they didn't raise AFE's to capitalized the assets after the downturn. So there is another huge write off sitting in the inventory.

Bottom Line: Weatherford has negative value (Liabilities greater than the Assets). No one would buy WFT, so stop holding out for a savior. Any company can spend less money and get the assets for cash. Just like Schlum did.

I know they just got 400 million. But that is a drop in the bucket and they probably wont even use it to pay down debt. Because they are greedy and stupid.

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13 replies (most recent on top)

Weatherford is a great company to work for and we are 1, we will get through the rough time its just a matter of time......

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WFT just reported earnings today. A 1.74 billion dollar loss for the quarter.

And I would like to point out that in the 4th quarter, asset write downs were 1.68 billion!!!

Which is what I said would happen in my original post. At least they spent the 430 million from Schlum on paying down the debt. At least they say they did. But I doubt the 10-Q will say that when they finally post it. Nothing left of this company. Better get out while you can.

So with the additional asset write downs and only 430 million less debt. How much do you think WFT is worth now? Less than nothing.

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Chapter 11 would allow the removal of some debt, and removal of all the useless management layers. And allow the operations to emerge profitable. Many of the operations are profitable. But the corporate overhead is killing them, and the debt kills them in the end. Restructure under chapter 11 and many of the operations keep their jobs. Without the stupid management and the corporate burden created by all the people that were the old Weatherford. (You know who you are). Best solution for everyone !

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Yep, don't think it matters if it is 7, 11, 13. There is no way this thing is coming out looking the same. Best bet for stake holders as well as creditors, is that they sell off any of the groups with any value to anyone that will take them (eg. Pressure Pumping to Schlumberger) and get the debt down and maybe some of the good workers they do have will keep their jobs with a new company that is in better shape and better managed.

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Are you referring to chapter 7 or chapter 11, not sure if makes a difference at this stage

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Have to agree with last post. Was at WFT previously and know for a fact, there is A LOT of inventory that should have been written off but has not been. This is because some of the managers are afraid of fallout when it is learned just how poorly they have been running their branch plants. You must also take into account that in some areas there is inventory that the manager does not know anything about so they let it sit there rather than ask a question and look like a fool.

When it comes to their IP, they do have a lot of good there however with the downturn they let folks that knew it go and have not defended it all that well and as mentioned much is for older products at this point that they have done nothing to improve upon.

good luck to those that are still there and remember the best time to get that new job is while you still have one, get to looking.

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What may or may not be news to anyone on the outside, is that the asset and inventory values are crap-ola. Further huge write offs are being booked in Q4. Write downs of Latin America AR, just like HAL did. Good will is full of patents on dead product lines that they never wrote down. When you look at the total assets vs total liabilities, you see that Bankruptcy is the only solution for WFT.

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This is news?

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Request permission to land

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WFT is like the herps. Here to stay!

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Pigs will fly before wft goes down.

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Bye bye WFT

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No chance of a come back, prolonging the agony and digging a bigger hole with every quarter that passes, what must the shareholders and banks be thinking, look at it this way, wft was billions in debt before oil tumbled, can't even make money when things are good so what's the plan.

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so true and way over due goodbye a--holes

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