We hired way too many Slb rejects in management. They were laid off by Slb and what have they accomplished for WFT? In 12 days the delisting and bankruptcy process begins. This was all avoidable.
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Look at the numbers. ( Very much simplified here for illustrative purposes)
$8,000,000,000 in debt
Take simple interest of say 10%. That is $800,000,000 a year in interest or $200,000,000 a quarter.
So you need $200,000,000 every quarter in free cash flow just to service the debt. This does not even begin to touch the principle amount.
Of course you need to go look into how they have the debt structured and it is considerably more complex than the example but look at what they have to make each quarter just to stay even! Majority of the time they have not doe it. This has not been sustainable for some time now.
It was not avoidable. You can’t get that much in debt and climb out. This was a BDD issue and his management team.
They went out and bought companies and did not know how to bring them into an organization that worked as a single company. They continued to do this year after year, it was inevitable that it would catch up to them at some point.
Sometimes I think SLB trains people about how to destroy companies and ‘lays them off’ to go do the dirty work. Touché SLB.