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Key Energy Services Bankruptcy Reorganization Plan Effective

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Key Energy Services’ Joint Prepackaged Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on December 6, 2016. The reorganized Company received approval to list its new common stock on the NYSE in conjunction with its emergence, and trading is expected to commence on December 16, 2016 under the ticker symbol “KEG.”

Platinum Equity, which previously held a majority of Key Energy Services’ senior notes, is now the Company’s largest shareholder. Robert Drummond, Key Energy Services’ president and C.E.O., comments, “We could not be more pleased to be emerging from our bankruptcy process in such an expeditious fashion and to concurrently re-list Key’s new common shares on the New York Stock Exchange….Platinum Equity has also been a strong partner in driving the restructuring process, and the firm’s M&A and operations capabilities will be instrumental in executing our long-term strategic plan.”

According to BankruptcyData’s detailed Plan Summary, “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. The Plan Support Agreement requires that the Debtors emerge from chapter 11 no later than 90 days after the Petition Date and establishes that the PSA Parties will support the Plan.”

This onshore rig contractor filed for Chapter 11 protection on October 24, 2016, listing $1.4 billion in pre-petition assets.

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


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