Cypress Environmental Taken Over by Argonaut in Bankruptcy Reorg

Cypress Environmental Partners LP won bankruptcy court approval to transfer all equity to Argonaut Private Equity in exchange for erasing about $59 million in secured debt owed.

The reorganization plan, approved after a hearing Tuesday by Judge Marvin Isgur of the US Bankruptcy Court for the Southern District of Texas, calls for trade creditors to be paid in full. Other unsecured creditors will receive a pro rata distribution from a pool of about $250,000 contributed by Argonaut.

Argonaut bought Cypress’ debt in April, prior to the Tulsa, Okla.-based pipeline inspection company’s Chapter 11 case.

In May, Cypress filed a ...