Key Energy Services, Inc. Enters into A Forbearance Agreement and the Loan Agreement with Cortland Products Corp
January 10, 2020 at 04:18 pm EST
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As previously announced, on October 29, 2019, Key Energy Services, Inc. entered into a forbearance agreement with Cortland Products Corp., as agent, and the lenders party thereto, collectively holding over 99.5% of the principal amount of the outstanding term loans, regarding a default under the Term Loan and Security Agreement, dated as of December 15, 2016, by and among Key, the Agent and the Term Loan Lenders and a forbearance agreement with Bank of America, N.A., as administrative agent and all of the lenders party thereto regarding a cross-default under the Loan and Security Agreement, dated as of April 5, 2019, by and among Key, the Administrative Agent and the ABL Lenders. On January 10, 2020, the Company and the Lenders party thereto amended the Forbearance Agreements to extend the forbearance period. Pursuant to the Forbearance Agreement Amendments, the Lenders party thereto have agreed that, until the earlier of January 31, 2020 or the occurrence of certain specified early termination events, such Lenders will forbear from exercising any default-related rights and remedies with respect to the Specified Defaults.
Key Energy Services, Inc. provides an array of energy production solutions and services. The Companyâs solutions include well servicing, fishing and rental services and cementing and abandonment. Its fleet of rigs includes a range of classes for production, including completion services. Each rig is available with ancillary equipment to help meet clients' needs. It offers a full line of services and rental equipment to enhance the value of its customers' oil and gas wells. Its rental equipment includes reverse units, drill pipe, tubulars, laydown machines, power swivels, foam air units, fishing and completion tools and others. Its P&A package provides all the equipment necessary to plug and abandon a well, all from a single service provider.