The company filed for Chapter 11 protection in October with $1.1 billion in assets and $1.2 billion in debts.

Key, like many oil companies recently, expanded too quickly during the oil boom and racked up hundreds of millions of dollars in debt that it was unable to support in the crash, as oil prices plunged from $107 a barrel in the summer of 2014 to $26 in February. By the end of 2015, the company had amassed nearly $1 billion in long-term debt and run up more than $1 billion in operations losses, according to regulatory filings.

RELATED: Key Energy becomes latest oil company to file for bankruptcy

The bankruptcy wiped out $694 million in Key's long-term debt. Some holders of Key stock before the bankruptcy will receive 5 percent of the new company's shares. The rest goes to the companies that held Key debt. Platinum Equity, a Los Angeles-based global investment firm that focuses on corporate turnarounds, is now the company’s largest shareholder.

About 200 North American oil companies and service providers, half based in Texas, have filed for bankruptcy since the start of 2015, according to Dallas law firm Haynes and Boone.