** Shares of drilling services and equipment provider Boart Longyear Ltd BLY.AX drop as much as 28.3% to A$0.38, their lowest since Dec 18, 2020
** Stock on track for the worst session since Jan 8
** Co says it has reached an agreement with majority of lenders for a proposed substantial recapitalisation, of which its total debt would decrease to less than $200 mln, with about $795 mln of debt being converted into equity Says lenders will own 98.5% of the co's post-recapitalisation ordinary shares
** Boart Longyear has underperformed the S&P/ASX 200 Materials (Industry Group) sector .AXMAJD by 9.7 percentage points in the past one month
** Main stock index S&P/ASX 200 .AXJO slips 0.6%
** As of last close, stock up 21.8% this year
(Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)