THE DOMINOES OF THE FINANCE WORLD, PLATINUM PARTNERS…
THE WALL STREET JOURNAL,
AUGUST 24, 2016
Key Energy Services Expects to File for Bankruptcy – WSJ
Oil-field service company Key Energy Services Inc. intends to file for chapter 11 bankruptcy protection with a plan that would make private-equity firm Platinum Equity LLC its largest shareholder.
Under the plan, holders of senior notes, including Platinum, would own about 95% of the reorganized company’s common shares. Current equity holders would have about a 5% stake.
Energy producers have cut spending during a severe and lengthy pricing downturn, leading to lower demand and job cuts at companies that provide services such as drilling and completing wells.
Key Energy disclosed in June that it was in discussion with lenders about a potential bankruptcy filing.
The company’s second-quarter revenue fell to $95 million from $197.5 million a year earlier.
On Aug. 12, the Securities and Exchange Commission said Key Energy agreed to disgorge $5 million as part of a settlement over violations of U.S. foreign-bribery law.
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