Knight Energy Holdings LLC has emerged from Chapter 11 bankruptcy organization under the control of Clearlake Capital Group LP, a Santa Monica, California-based private investment firm.

Knight is one of the largest privately owned oilfield rental tool companies in the world. The company asked the bankruptcy court for protection from its creditors in August. At the time, the company was mired in debt and the former head of the family-owned company, Mark Knight, was under indictment. Mark Knight allegedly conspiring to plant drugs in the vehicle of his brother Bryan Knight in an effort to discredit him in a battle over the future of the oilfield rental tool company.

The reorganization plan wiped out $175 million in debt and made Clearlake Knight's majority shareholder.

"With the transaction complete, Knight can now leverage Clearlake's substantial resources and our experience in the energy sector to propel its growth strategy," said José E. Feliciano, Clearlake founder and managing partner. "Knight has a demonstrated track record of providing customers with high quality oilfield tool rental and service solutions. We firmly believe that with our financial support and a strengthened financial profile, Knight is now poised for success during this new phase of growth."

Knight Energy Holdings files for Chapter 11 bankruptcy reorganization; family embroiled in staged drug bust allegation