Davis Brothers Submit Plans to Repay Debts

Three companies owned by Cullen Davis and his brother, Ken Davis, have submitted plans to reorganize and repay almost $915.6 million in debts.

The joint plan of reorganization was filed Tuesday in U.S. Bankruptcy Court in Dallas by Kendavis Holding Co., Kendavis Industries International and Loffland Bros.

Barbara Houser, an attorney for the companies, said that, if the companies’ business projections are correct, they will pay off all liabilities. She said some subsidiary companies will be sold to pay off a $100-million note in 21 months.

Kendavis has not identified which companies will be put up for sale, Houser said.

The three companies were forced into bankruptcy in February by eight banks that demanded immediate payment of $319 million in debts. A month later, the companies consented to reorganization.

Were Among Richest

Kendavis Holding sells wholesale oil field supplies and equipment. It employs 7,000 people worldwide, including 1,298 in Fort Worth and Dallas. Kendavis Industries International is a management subsidiary of Kendavis Holding.

Cullen and Ken Davis were listed among the 400 wealthiest Americans by Forbes magazine in 1984, with fortunes estimated at $250 million. The 1985 listing, released in October, dropped them from the list.

Loffland Bros., which calls itself the world’s largest contract oil drilling firm, filed under Chapter 11 in March. A judge had denied it an injunction to block a French bank from seizing the company’s drilling rigs to secure $13.5 million in debt.

Loffland Bros. lost $11 million last year.

Banks filed petitions on May 17 to force 16 other Kendavis subsidiaries into Chapter 11 proceedings.