New Delaware Chapter 11 Filings – Key Energy Services, Inc., et al.

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Key Energy Services, Inc., and three of its subsidiaries filed petitions for relief under chapter 11 in the Bankruptcy Court for the District of Delaware earlier this morning (Case No. 16-12306).  According to the First Day Declaration, the Debtors comprise the largest onshore rig-based well servicing contractor in the nation.  The Debtors enter chapter 11 with a plan support agreement and prepackaged plan of reorganization, which proposes to reduce the Debtors’ funded debt from approximately $1 billion to approximately $250 million while still providing some recovery to current equity holders.  The Declaration goes on to state that solicitation of the Plan began on September 21 and that 100% of the Holders of Term Loan Claims and 99.89% in principal amount of the Holders of Senior Notes Claims have voted in favor of the Plan.  The Disclosure Statement can be found hereEpiq Bankruptcy Solutions is the proposed claims agent.  Chief Bankruptcy Judge Brendan L. Shannon has been assigned to the cases.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.

 

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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