Key Energy Services Gets Court’s Approval to Leave Bankruptcy

by San Antonio Attorney

Key Energy Services has received a bankruptcy judge’s approval on its reorganization plan, which is going to let the contractor of oil field services to leave from bankruptcy before the end of 2016.

Key Energy’s bankruptcy petition was filed in October, stating debts of $1.2 billion and assets of $1.1 billion.

The firm’s reorganization plan slashes $725 million off its liabilities and is going to emerge bankruptcy with about $80 million, as stated by the company.

Platinum Equity is going to be the largest shareholder of the newly restructured company. The changes are not going to alter its main operations according to its CEO and president Robert Drummond.

The Houston-based company was one of the many firms crashed by the big decline in oil prices that start in 2014 and has continued, just lately –but unsteadily—reaching $50 a barrel. Oil companies are hoping that a new OPEC deal will reduce production so that prices are going to climb higher.

Individuals normally reorganize under Chapter 13 bankruptcy, which provides a simplified plan at a lower cost that makes it possible for the individual to retain possession of his property and assets, repay secured debt, and wipe out unsecured debt after completing the plan. A San Antonio Chapter 13 Attorney can carefully explain how it actually works.

Leave a Comment

Previous post:

Next post: