Ferrellgas Partners, subsidiary file for Chapter 11 bankruptcy protection

Ferrellgas Partners LP and its unit Ferrellgas Partners Finance Corp. filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

Ferrellgas Partners filed for bankruptcy as part of its previously announced transaction support deal, according to a Jan. 11 news release. The bankruptcy filing does not include Ferrellgas Partners' operating partnership Ferrellgas LP, which is liquid and operating normally.

The transaction support deal includes measures to eliminate Ferrellgas Partners' and Ferrellgas Partners Finance's debt, refinance Ferrellgas' roughly $1.5 billion of debt, and raise of more than $1 billion of new capital for the operating partnership.

Squire Patton Boggs (US) LLP is acting as the legal counsel, while Moelis & Co. LLC is serving as the financial adviser to Ferrellgas. Davis Polk & Wardwell LLP and Ducera Partners LLC are advising the ad hoc group of Ferrellgas Partners' noteholders.

Kansas-based Ferrellgas Partners, through its operating partnership and subsidiaries, serves propane customers in 50 states, the District of Columbia and Puerto Rico.