Key Energy in talks with banks, bondholders about waiver of 10-K delay

By Sara Rosenberg

New York, March 28 - Key Energy Services Inc. is in discussions with its bank group and its bondholders for a waiver of delivery of the 2003 10-K after March 31 since it is still finalizing the restatements to its financials, according to a company news release.

As was previously announced, the company expects that its restatement process will result in charges or adjustments that will affect 2003 results and in some instances the results in prior years.

These charges or adjustments include the loss, currently believed to be about $2.7 million, recognized in the fourth quarter of 2003 and prior periods related to South Texas Division; the write off of about $5.0 million goodwill and other intangible assets recorded in the second quarter of 2003 in connection with an acquisition in Key's South Texas Division because the value of the acquired business was less than the value that was represented to Key; and the write off in the fourth quarter of 2003 for assets determined not to exist at Dec. 31, 2003.

Key Energy is a Midland, Texas, rig-based, onshore well service company.

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