This is not surprising. But, I am sad to say it probably isn't rare:
Weatherford has been in talks with JP Morgan Chase to re-negotiate its revolving credit facility -- the only thing keeping the company afloat. However, in a move that shocked the financial markets, JP Morgan led an equity offering that raised $565 million for Weatherford. Based on liquidation value Weatherford is insolvent. The question remains, why would JP Morgan risk its reputation by selling shares in an insolvent company? JP Morgan is head of a banking syndicate that has the revolving credit facility.JP Morgan and Morgan Stanley also happen to be lead underwriters on the equity offering. The proceeds from the offering are expected to be used to repay the revolving credit facility.