Cypress Environmental Partners, L.P. and affiliates filed a prepackaged chapter 11 in Houston on May 8 after concluding they could not refinance a $58,853,976 credit facility due May 31, 2022. The petition estimated 100-199 creditors, $10 million-$50 million of assets, and $50 million-$100 million of liabilities, while also disclosing year-end 2021 book assets of $96.978 million against $62.418 million of debt. The debtors filed a plan with the petition and sought a combined disclosure statement and confirmation process from day one, signaling an expedited balance-sheet fix rather than an in-court marketing process source filing source filing source filing.

Boylan's first-day declaration says the case was built around an RSA with Argonaut Private Equity, which had acquired the lender position and committed $5 million of DIP financing in exchange for a debt-for-equity recapitalization. Management tied the filing to a collapse in operating performance: inspection-services revenue fell from $372.0 million in 2019 to $113.0 million in 2021, environmental-services revenue fell from $10.3 million to $4.3 million, and the company entered chapter 11 with 333 inspectors plus nine Bakken water-treatment facilities tied to ten Class II injection wells source filing.