Davis Polk advised an ad hoc group of secured term lenders (the “Ad Hoc Group”) in connection with an out-of-court restructuring (the “Restructuring”) of Key Energy Services, Inc. (“Key Energy”) and its subsidiaries (collectively, the “Company”). Pursuant to the Restructuring, the Ad Hoc Group exchanged their outstanding term loans for (i) approximately 97% of Key Energy’s common shares (subject to dilution) and (ii) $20 million of new term loans. The Ad Hoc Group also contributed $30 million in new term loans. The Restructuring also included entry into an amended and restated ABL credit facility and certain changes to the Company’s governance, including changes to the board of directors and stockholders agreement.

Headquartered in Houston, Texas, Key Energy is the largest onshore, rig-based well servicing contractor based on the number of rigs owned. The company is publicly listed and provides a full range of well services to major oil companies and independent oil and natural gas production companies, include rig-based and coiled tubing-based well maintenance and workover services, well completion and recompletion services, fluid management services, fishing and rental services, and other ancillary oilfield services, and operates in most major oil and natural gas producing regions of the continental United States.

The Davis Polk corporate team included partner Derek Dostal and associates John H. Runne and Yushen Liu. The restructuring team included partner Damian S. Schaible and associate Adam L. Shpeen. The finance team included partner Meyer C. Dworkin, counsel Mayer J. Steinman and associate Alexander K.B Shimamura. Counsel Leslie J. Altus provided tax advice. The executive compensation team included associate Joseph S. Brown. All members of the Davis Polk team are based in the New York office.

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