Houston-based Key Energy Services announced yesterday (Aug. 25th) that they have been in the process of working out a plan with creditors and plan to file for bankruptcy in November. The company had borrowed hundreds of millions during the shale oil boom but when oil prices tanked, they were unable to keep up with their loan obligations. By the end of 2015, they had accumulated close to $1 billion in debt and more than $1 billion in operations losses. Key Energy Services CEO Robert Drummond released a statement “that the bankruptcy would cut current company debt from almost $1 billion to $250 million” and that “Key will be well-positioned to take advantage of opportunities that emerge as the market recovers.”
You can read Houston Chronicle’s article here.