Knight Energy files for Chapter 11 - KATC.com | Continuous News Coverage | Acadiana-Lafayette

Knight Energy files for Chapter 11

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Knight Oil Tools Knight Oil Tools

Knight Energy Holdings LLC has filed for Chapter 11 bankruptcy, court records show.

The petition, filed Tuesday in federal court, indicates the company has about $50 to $100 million in assets, compared to $100 to $500 million in debt. 

Chapter 11 is generally known as the "reorganization" method of bankruptcy, because it allows the company or person filing to reorganize their finances. Usually, it involves the sale of assets to try to pay down debts.

The company has been embroiled in controversy for several years. 

In 2015, Mark Knight, former Knight Oil Tools CEO, was indicted along with two former law enforcement officers on charges of drug racketeering. 

Knight, former Lafayette Parish Sheriff Deputy Jason Kinch and former Louisiana State Trooper Corey Jackson, are accused of conspiring to plant drugs in Bryan Knight's, Mark Knight's brother's, vehicle so he would be discredited during legal talks over the future of the company.

Their trial is set for later this month. Last year a fourth man indicted in the case pleaded guilty. To read that story, click here

Months before the indictment, Knight was removed from the CEO position, but remained on the board of directors. To read that story, click here

Last year, our media partners at the Advocate did an in-depth report on the situation. To read that story, click here

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