Houston-based oilfield service company Key Energy Services Inc. plans to file for chapter 11 bankruptcy protection in Delaware by November 8.
Under the company’s restructuring plan, Platinum Equity LLC would become its largest shareholder, according to a report filed with the U.S. Securities and Exchange Commission on Thursday. Holders of senior notes would own about 95 percent of the reorganized company’s common shares, with 5 percent owned by current equity holders. The plan must be approved by creditors.
Key Energy expects the restructuring plan will decrease the company’s debt from nearly $1 billion to $250 million.
During the shale boom, Key Energy borrowed heavily. The company was unable to maintain its loan obligations when oil prices plunged in 2014. Key reported more than $1 billion in losses for 2015.