June 17 (Reuters) - WW International ( WGHTQ ),

formerly known as WeightWatchers, is on track to exit its

financial reorganization to cut $1.15 billion in debt next week

as part of its bankruptcy process, the weight management firm

said on Tuesday.

WHY IT'S IMPORTANT

WeightWatchers filed for Chapter 11 bankruptcy protection

last month in a bid to cut its debt after hugely popular obesity

drugs upended its business model.

The company offers nutrition and behavior-change programs

for weight loss and also bought subscription-based telehealth

platform Sequence in 2023 to expand into obesity drug

prescriptions.

CONTEXT

WeightWatchers began as a weekly weight-loss support group

meeting with 400 attendees, and quickly turned into a worldwide

phenomenon with millions of members across the globe.

But the rising popularity of GLP-1 drugs such as Novo

Nordisk's Wegovy and Eli Lilly's ( LLY ) Zepbound for

obesity hit demand for its traditional programs.

The company had an agreement with creditors to restructure

its debt and quickly exit the court process.

It has continued operating as a publicly traded company

without interruption throughout the reorganization process, the

company said on Tuesday.

BY THE NUMBERS

WW said the reogranization plan will eliminate $1.15 billion

in debt from the company's balance sheet. It has accumulated

substantial debt of around $1.6 billion, according to the

Chapter 11 petition filed in Delaware bankruptcy court.