Pros
They are currently in the process of preventing a full blown bankruptcy by allowing the largest bond holder of their debt ($700 million roughly, of $950 million total) a large majority ownership in the company. This may prevent a full blown bankruptcy, short term, whereby the debt holders could have forced the company into liquidation or forced sale of any remaining assets (workover rigs, buildings, properties, etc.) to cover those debts. What does this mean to the average hourly employee? It means you may show up one day to work and all the doors are locked....no prior warning or notice!
Cons
Many economists believe we are headed into a deeper recession in 2017 which will put additional stresses on the energy companies already hurting or carrying a high level of debt. There is a high probability that Key Energy goes bankrupt in the near future as oilfield demand for their services becomes even more competitive and others in the same business that are healthier financially cut costs even further as the recession deepens. Key has too much 'true debt' and besides their largest debt holder turned majority owner, it has a poor track record of increasing debt in a downturn market. Going forward, besides their majority shareholder, it will have extremely limited access to any additional funds from which to operate their day to day business from. And since the majority shareholder has already sunk $700 million into the company, it is doubtful they will be free with any remaining cash requests for ongoing day to day operational expenses. Expect an even greater cost cutting initiative to begin soon going forward. This means all non bills will be challenged and little to no pay raises for the foreseeable future (1 year minimum).