Knight Energy granted interim access to $3.2 million of DIP financing

By Caroline Salls

Pittsburgh, Aug. 11 – Knight Energy Holdings, LLC received court approval to use $3.2 million of its $14.5 million debtor-in-possession facility on an interim basis, according to an order filed with the U.S. Bankruptcy Court for the Western District of Louisiana.

The final hearing is scheduled for Aug. 25.

The company said the financing is expected to provide the company with liquidity to support the business during the Chapter 11 proceeding.

Cantor Fitzgerald Securities is the administrative and collateral agent.

Interest will accrue at a fixed rate of 8˝%.

The DIP facility will mature on the earliest of Jan. 31, Sept. 1 if the final order has not been entered, the effective date of a Chapter 11 plan, the closing of a sale of all or substantially all of the company’s properties and the acceleration of the loans.

Knight, a Lafayette, La., oilfield rental tool company, filed bankruptcy on Aug. 8. The Chapter 11 case number is 17-51014.

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