June 17 (Reuters) - WW International WGHTQ.PK, 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 NOVOb.CO Wegovy and Eli Lilly's LLY.N 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.

(Reporting by Siddhi Mahatole in Bengaluru; Editing by Sahal Muhammed)

((siddhi.mahatole@thomsonreuters.com))