The parent company of Lafayette-based Knight Oil Tools has filed for Chapter 11 bankruptcy, citing debts ranging from $100 million to $500 million.
According to multiple news reports, Knight Energy Holdings LLC filed for bankruptcy Tuesday, listing 11 companies as subsidiaries and three affiliate companies. The company says its assets range from $50 million to $100 million.
Knight Oil Tools has been embroiled in a racketeering scandal involving the company’s top executives, who also were engaged in an ownership dispute, The Advertiser reports. Former CEO and President Mark Knight is accused of plotting to plant illegal drugs on the vehicle of his brother, Bryan Knight, who at the time was the company’s vice-president.
Mark Knight allegedly paid an employee, Russell Manuel, then-State Trooper Corey Jackson and then-Lafayette Parish sheriff’s deputy Jason Kinch to participate in the scheme. Manuel pleaded guilty to multiple charges, including conspiracy to distribute cocaine, methadone and hydrocodone; intimidating a witness and conspiracy to commit corrupt influence. He was placed on probation. Mark Knight, Kinch and Jackson are scheduled to go to trial Aug. 28.
