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Key Energy Services Bankruptcy Plan Summarized

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BankruptcyData’s detailed analysis and summary of Key Energy Services’ Joint Prepackaged Plan of Reorganization, dated October 24, 2016, is now available. The U.S. Bankruptcy Court confirmed the Plan on December 6, 2016; however, an effective date has not yet been issued.

BankruptcyData notes, “The Plan contemplates that the Debtors will reduce its total operating company funded debt from approximately $1 billion to approximately $250 million, after giving effect to the Restructuring. This reduction in debt will result in a reduction in associated yearly interest expense from approximately $79 million to approximately $31 million, after giving effect to the Restructuring. The Plan provides that the Debtors will be reorganized as a going concern and contemplates a significant reduction in long-term debt, resulting in what the Debtors believe is a stronger, de-leveraged balance sheet.”

The Plan Summary continues, “The Debtors have determined that a prolonged chapter 11 process could severely damage its ongoing business operations and going-concern value. Consequently, the prepackaged nature of the Plan will allow the Debtors to exit chapter 11 quickly and reorganize as a going concern.” BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Key Energy Services’ October 24, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.

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The post Key Energy Services Bankruptcy Plan Summarized appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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