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T R O U B L E D C O M P A N Y R E P O R T E R
Saturday, December 24, 2016, Vol. 20, No. 358
Headlines
KEY ENERGY: Reports $7.58 Million Net Loss at October 31
LIFE PARTNERS: Net Loss Widens to $5.12 Million in October
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KEY ENERGY: Reports $7.58 Million Net Loss at October 31
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Key Energy Services, Inc., et al., filed with the U.S. Securities
and Exchange Commission their monthly operating report for the
period from October 24, 2016 through October 31, 2016.
The Debtors suffered a net loss of $7.58 million on $9.22 million
of revenues for the reporting period.
As of October 31, 2016, the Debtors' listed total assets of $925.36
million, $5.57 million in total liabilities, $1.11 billion in
liabilities subject to compromise, and a total shareholders' equity
of -$189.26 million.
At October 24, the Debtors had $29.81 million cash. They listed
$18.48 million in total receipts and $16.80 million in total
disbursements. The Debtors had $31.49 million cash at October 31.
A copy of the monthly operating report is available at the SEC at:
https://is.gd/QkjYJf
About Key Energy
Headquartered in Houston, Texas, Key Energy, Inc., claims to be
the largest domestic onshore, rig-based well servicing contractor
based on the number of rigs owned. The Company provides a full
range of well services to major oil companies, foreign national oil
companies and independent oil and natural gas production companies
including Chevron Texaco Exploration and Production.
Each of Misr Key Energy Investments, LLC, Key Energy Services,
Inc., Key Energy Services, LLC, and Misr Key Energy Services, LLC,
filed a voluntary petition under Chapter 11 of the Bankruptcy Code
(Bankr. D. Del. Lead Case No. 16-12306) on Oct. 24, 2016. Key's
other domestic and foreign subsidiaries are not part of the
bankruptcy filing.
As of the second quarter of 2016, the Company had approximately
$1.13 billion in total assets and approximately $1 billion in
aggregate funded debt. As of the date of the Petition Date, the
Debtors hold approximately $29.8 million in encumbered,
unrestricted cash. The Debtors currently have approximately $13.4
million of trade debt and other debt owed to general unsecured
creditors, as disclosed in court papers.
The Debtors have hired Sidley Austin LLP as general bankruptcy
counsel; Young, Conaway, Stargatt & Taylor, LLP, as Delaware
counsel; PJT Partners LP as investment bankers; Alvarez and Marsal
North America, LLC, as financial advisors; and Epiq Bankruptcy
Solutions, LLC, as notice, claims, solicitation and voting agent.
* * *
Key Energy filed for Chapter 11 pursuant to the terms of a plan
support agreement among Key, Platinum Equity and certain other
holders of its 6.75% Senior Notes due 2021, collectively holding
more than 89% of its outstanding Senior Notes, and certain lenders
holding more than 87% of the principal amount of loans outstanding
under Key's Term Loan Credit Agreement dated June 1, 2015. The PSA
contemplates the reorganization of the Debtors pursuant to a
prepackaged plan of reorganization. Key previously commenced a
solicitation for acceptance of the Plan, which was accepted by
voting holders of 99.89% in principal amount and 93.88% in number
of Key's Senior Notes and voting holders of 100% in principal
amount and 100% in number of loans under the Term Loan,
constituting the requisite number of voting holders of the Senior
Notes and term loans. Platinum Equity, a Los Angeles-based global
investment firm with a unique focus on operations and extensive
experience helping businesses in transition, as holder of a
majority of the Company's Senior Notes, will become Key's largest
shareholder upon consummation of the Plan.
The Plan contemplates that funded debt will be reduced from
roughly $1 billion to approximately $250 million.
Under the Joint Plan, Class 6 General Unsecured Claims are
unimpaired and will recover 100%.
LIFE PARTNERS: Net Loss Widens to $5.12 Million in October
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Life Partners Holdings, Inc., filed with the U.S. Securities and
Exchange Commission their monthly operating report for October
2016.
The Debtor incurred a net loss of $5.12 million on zero revenue for
the month, a huge increase compared to $705,085 net loss listed for
September.
As of October 31, 2016, the Debtor had $404,606 in total
assets, $8.31 million in total liabilities, and -$7.91 million in
total stockholders' equity.
The Debtor had $232,258 cash at the start of the month. It
reported total disbursements of $9,325 and zero receipts. At month
end, the Debtor had $222,933 ending cash balance.
A copy of the monthly operating report is available at the SEC at:
https://is.gd/EqlCiz
About Life Partners Holdings
Headquartered in Waco, Texas, Life Partners Holdings, Inc. --
http://www.lphi.com/-- is the parent company engaged in the
secondary market for life insurance, commonly called "life
settlements." Since its incorporation in 1991, Life Partners,
Inc., has completed over 162,000 transactions for its worldwide
client base of over 30,000 high net worth individuals and
institutions in connection with the purchase of over 6,500
policies totaling over $3.2 billion in face value.
LPHI is a publicly traded company incorporated in Texas and its
common stock has been delisted from the NASDAQ (formerly trading
under the symbol LPHI).
Life Partners Holdings sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. N.D. Tex. Case No. 15-40289) on Jan. 20,
2015.
The case is assigned to Judge Russell F. Nelms. J. Robert
Forshey, Esq., at Forshey & Prostok, LLP, serves as counsel to the
Debtor.
LPHI disclosed $2,406,137 in assets and $52,722,308 in liabilities
as of the Chapter 11 filing.
The official committee of unsecured creditors formed in the case
tapped Munsch Hardt Kopf & Harr, P.C., as counsel.
Tracy A. Bolt of BDO USA, LLP was named as examiner for the
Debtor's case. At the behest of the U.S. Securities and Exchange
Commission, the U.S. Trustee, and the Creditors Committee, the
Court ordered the appointment of a Chapter 11 trustee. On March
13, 2015, H. Thomas Moran II was appointed as Chapter 11 trustee
in LPHI's case. The trustee is represented by Thompson & Knight
LLP.
The Chapter 11 trustee signed Chapter 11 bankruptcy petitions for
LPHI's subsidiaries on May 19, 2015: Life Partners Inc. (Case No.
15-41995) and LPI Financial Services, Inc. (Case No. 15-41996).
Life Partners is estimated to have $100 million to $500 million in
assets and more than $1 billion in debt. LPI Financial estimated
less than $50,000.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Jhonas Dampog, Marites Claro, Joy Agravante, Rousel Elaine
Tumanda, Valerie Udtuhan, Howard C. Tolentino, Carmel Paderog,
Meriam Fernandez, Joel Anthony G. Lopez, Cecil R. Villacampa,
Sheryl Joy P. Olano, Psyche A. Castillon, Ivy B. Magdadaro, Carlo
Fernandez, Christopher G. Patalinghug, and Peter A. Chapman,
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Copyright 2016. All rights reserved. ISSN: 1520-9474.
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