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, the Wall Street Journal reported today. Under the plan, holders of senior notes, including Platinum, would own about 95 percent of the reorganized company’s common shares. Current equity holders would have about a 5 percent stake. 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. Key Energy expects its reorganization will reduce its debt from almost $1 billion to $250 million. Read more. (Subscription required.)
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