By Sarah Chaney 

Key Energy Services Inc., an oil-well servicer, filed for chapter 11 protection on Monday after securing its creditors' support for a debt-restructuring deal.

Key said in court papers that its restructuring plan, which is subject to the approval of the U.S. Bankruptcy Court in Wilmington, Del., will cut its $1 billion in liabilities to about $250 million so it can emerge from chapter 11 with a "manageable debt load."

Court papers show that Key filed a so-called prepackaged restructuring, which all of its term loan lenders and nearly all of its senior bondholders have agreed to support. A prepackaged bankruptcy allows a company to quickly move through chapter 11 and reduces the expense of the process.

Key, based in Houston, cited the challenging energy environment for its need to restructure.

Key has approximately 2,900 employees, mostly based in the U.S. Its customers include major oil companies, foreign national oil companies and independent oil and natural gas production companies.

Write to Sarah Chaney at sarah.chaney@wsj.com

(END) Dow Jones Newswires

October 24, 2016 10:16 ET (14:16 GMT)