Item 1.01
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Entry into a Material Definitive Agreement.
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As previously announced, on October 29, 2019, Key Energy Services, Inc. (the Company or Key) entered into (i) a
forbearance agreement (as amended on December 6, 2019, the Term Loan Forbearance Agreement) with Cortland Products Corp., as agent (in such capacity, the Agent), and the lenders party thereto (the Term Loan
Lenders), collectively holding over 99.5% of the principal amount of the outstanding term loans, regarding a default under the Term Loan and Security Agreement, dated as of December 15, 2016, by and among Key, the Agent and the Term Loan
Lenders and (ii) a forbearance agreement (as amended on December 6, 2019 and December 20, 2019, the ABL Forbearance Agreement and, collectively, the Forbearance Agreements) with Bank of America, N.A., as
administrative agent (the Administrative Agent), and all of the lenders party thereto (the ABL Lenders and, collectively with the Term Loan Lenders, 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 ABL Lenders (such defaults, the Specified Defaults).
On January 10, 2020, the Company and the Lenders party thereto amended the Forbearance Agreements (the Forbearance Agreement Amendments) to
extend the forbearance period. Pursuant to the Forbearance Agreement Amendments, the Lenders party thereto have agreed that, until the earlier of January 31, 2020 or the occurrence of certain specified early termination events, such Lenders
will forbear from exercising any default-related rights and remedies with respect to the Specified Defaults.
The foregoing description of the Forbearance
Agreement Amendments is qualified in its entirety by reference to the complete text of (i) the Second Amendment to the Term Loan Forbearance Agreement, attached as Exhibit 10.1 hereto and (ii) the Third Amendment to the
ABL Forbearance Agreement, attached as Exhibit 10.2 hereto, each incorporated herein by reference.