Item 1.01 Entry into a Material Definitive Agreement.
As previously announced, on October 29, 2019, Key Energy Services, Inc. (the
"Company" or "Key") entered into a forbearance agreement (as amended on
December 6, 2019, December 20, 2019 and January 10, 2020 the "ABL Forbearance
Agreement") with Bank of America, N.A., as administrative agent (the
"Administrative Agent"), and all of the lenders party thereto (the "Lenders")
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 Lenders (such
defaults, the "Specified Defaults").
On January 31, 2020, the Company and the Lenders party thereto amended the ABL
Forbearance Agreement (the "Forbearance Agreement Amendment"). Pursuant to the
Forbearance Agreement Amendment, the Lenders party thereto have agreed to extend
the forbearance period until the earliest of (i) February 28, 2020, (ii) the
occurrence of certain specified early termination events and (iii) the date on
which the previously announced Restructuring Support Agreement between the
Company and certain lenders under the Company's term loan facility (the "RSA")
is terminated in accordance with its terms. In addition, the Lenders have agreed
that the Forbearance Agreement shall also apply to any cross-default under the
Loan and Security Agreement that may arise from certain specified defaults under
the term loan facility set forth in the RSA.
The foregoing description of the Forbearance Agreement Amendment is qualified in
its entirety by reference to the complete text of the Amendment to the ABL
Forbearance Agreement, attached as Exhibit 10.1 hereto and incorporated herein
by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
10.1 Fourth Amendment to Forbearance Agreement, dated January 31, 2020, by
and among Key Energy Services, Inc., Key Energy Services, LLC, the Lenders
party thereto, and Bank of America, N.A., as administrative agent.
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