New Delaware Chapter 11 Filings – Key Energy Services, Inc., et al.
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 here. Epiq Bankruptcy Solutions is the proposed claims agent. Chief Bankruptcy Judge Brendan L. Shannon has been assigned to the cases.
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