Mark Knight kicked off board of Knight Oil Tools in wake of arrest _lowres

Mark Knight

Knight Energy Holdings LLC — whose board member is accused in a staged 2014 drug arrest of his brother — has filed for Chapter 11 bankruptcy reorganization.

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

In 2015, Mark Knight, former Knight Oil Tools CEO and Knight Energy Holdings president, was indicted along with two former law enforcement officers on charges of drug racketeering in Lafayette Parish.

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

That criminal case is set for trial later this month in 15th Judicial District Court. Last year a fourth man indicted in the case, former Knight Oil Tools employee Russell Manuel, pleaded guilty and is expected to testify.

Months before the indictment, Mark Knight was removed from the CEO position, but remained on the board of directors.