Knight Energy Holdings and its operating affiliates have signed a Restructuring Support Agreement (RSA) with certain debt holders representing more than 87% of the company’s senior secured credit facility due 2018 in conjunction with its voluntary filing of a pre-negotiated Chapter 11 petition today in the U.S. Bankruptcy Court for the Western District of Louisiana, Lafayette Division.

According to court documents, Cantor Fitzgerald Securities, Clearlake Capital Group, JPMorgan and Iberia Bank, represent the senior secured lenders.

The RSA provides for a substantial deleveraging transaction pursuant to which Knight will meaningfully improve its balance sheet by equitizing more than $175 million of its existing secured obligations and will substantially bolster its liquidity position through an exit financing facility.

The company was founded in 1972 by Eddy Knight, and is owned today by second-generation family members.

The Knight family released a statement saying, “Like many leading oil and gas companies, we have been affected by the ongoing downturn in the market. The company has spent considerable time since then focusing on how to best serve our customers, employees and to maintain strong relations with our vendors and employees. In order to best position our company for the future, we felt that 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.”

The company anticipates the relief requested being granted. As such, Knight will have ample liquidity to support the business during the Chapter 11 proceeding.

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 Energy is a privately-owned oilfield rental tool company.