The downturn in the oil and gas industry has caught up Louisiana-based Knight Energy Holdings LLC.
The company filed for Chapter 11 bankruptcy this week showing it has nearly $200 million in secured debt and another $10 million in unsecured debt.
Knight Energy is an oil and gas tool rental company whose leaders say they have already negotiated a debt-for-equity swap agreement with its largest creditor.The company is one of the largest privately-owned oilfield rental tool companies in the world.
“Like many leading oil and gas companies, we have been affected by the ongoing downturn in the market,” explained the company in a statement. “We felt a financial restructuring was necessary and worked with our stakeholders to achieve a consensual plan to deleverage the company and position Knight and our employees for success.”