Blue Rhino Propane Tank Marketer Ferrellgas Files Bankruptcy (1)

Ferrellgas Partners LP, whose Blue Rhino propane tank exchange network serves backyard barbecuers across the U.S., filed for bankruptcy to unload debts left over from a failed expansion.

The company sought federal court protection from creditors in Delaware with assets and liabilities of $100 million to $500 million, according to its Chapter 11 petition. The debtor is a holding company, but the operating company, Ferrellgas LP, isn’t part of the bankruptcy and will continue to run without interruption.

Ferrellgas will remain an employee-owned business and there will be no impact on customers, employees, vendors, suppliers or distributors, ...