Blue Rhino Propane Tank Maker Ferrellgas Plans Bankruptcy (2)

Ferrellgas Partners LP, whose Blue Rhino propane tank exchange network serves backyard barbecuers across the U.S., plans to file for Chapter 11 bankruptcy in Delaware to unravel its debt burden left over from a failed expansion.

The company will file its master limited partnership and finance entities to resolve a default on its 8.625% notes due 2020, according to a filing Friday. The company reached a restructuring support agreement with holders of about 74% of the 2020 bonds.

Ferrellgas, which has around 5,000 employees worldwide, will remain independent and employee-owned. A Chapter 11 filing allows a company to continue ...