Knight Energy Holdings LLC and its operating affiliates have signed a Restructuring Support Agreement with certain debt holders in conjunction with its voluntary filing of a pre-negotiated Chapter 11 bankruptcy. The petition, filed in the US Bankruptcy Court for the Western District of Louisiana, Lafayette Division, on August 8, noted the holding company has roughly $100 million to $500 million in debt, and about $50 million to $100 million in assets.
The debt holders represent over 87% of the company’s senior secured credit facility due 2018.
The RSA provides for a deleveraging transaction pursuant to which Knight will improve its balance sheet by equitizing over $175 million of its existing secured obligations. The company is also seeking approval of a $14.5 million DIP financing facility. The “first day” motions are scheduled to be heard by the Bankruptcy Court on August 9, 2017.
Heller Draper is acting as lead restructuring counsel, a representative from Opportune is serving as the Company’s Chief Restructuring Officer, and Farlie Turner has served as the company’s financial advisor.
Knight, a privately-owned oilfield rental tool company, supplies rental equipment and services for drilling, completion, and well control activities to the oil and natural gas industry.