Key Energy Services Inc., an oil-well servicer, yesterday won court approval of its restructuring plan, slightly more than a month after filing for bankruptcy protection, the Wall Street Journal reported today. Bankruptcy Judge Brendan Shannon approved the plan, which is designed to reduce Key’s debt load to $250 million from $1 billion. Key said that it hopes to emerge from bankruptcy this month. Key plans to sell up to $110 million in new stock in a rights offering, the proceeds of which will help it pay down such debts as $290 million owed to term lenders. In addition to a cash payment, these lenders will also get cash new debt. Under the plan, bondholders are slated to receive most of the company’s new shares in exchange for forgiveness of $675 million in debt. Certain bondholders, like Silver Point Capital LP and Soros Fund Management LLC, will pick up additional shares in the rights offering. Read more. (Subscription required.)
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