Paragon Industries, Inc., an Oklahoma-based manufacturer of steel pipes for the oil and gas industry, filed for Chapter 11 bankruptcy protection in the Eastern District of Oklahoma on May 22, seeking to reorganize its operations and pursue a sale of the business as a going concern.
According to court documents, the Sapulpa-headquartered company, which employs 74 people and was once the largest employer in the Oklahoma city, has been facing significant financial challenges due to rising raw material costs, declining demand for its products, and difficulty collecting on accounts receivable. The company has also been defending itself against 15 different lawsuits across multiple jurisdictions.
"Efficiency would best be served by providing the Debtor with a centralized forum and orderly procedure to resolve the various claims pending against the Debtor," stated Derek Wachob, Chief Executive Officer and Director of Paragon Industries, in an affidavit supporting the company's first-day motions.
Founded in 1982, Paragon Industries manufactures steel pipes and other steel products used in oilfield exploration, transmission, construction, mechanical and fire protection. Its key products include standard pipe, lone pipe, casing, sprinkler pipe, and pipe piles. The company operates its primary manufacturing facility in Sapulpa and a slitter facility in Muskogee, Oklahoma.
The bankruptcy filing reveals that Paragon is carrying substantial secured debt, including more than $77.7 million owed to the Wachob Irrevocable Trust and over $18.9 million to Byline Bank. The Wachob Trust holds a security interest in virtually all of the company's assets, while Byline Bank has security interests in certain real property and equipment.
Notably, just two months before the bankruptcy filing, on March 13, 2025, a court appointed C. David Rhoades as temporary receiver over Paragon Industries in a lawsuit brought by Byline Bank.
In the filing, Paragon stated its intention to proceed with marketing and selling its business as a going concern through the bankruptcy process. "The Debtor believes that the value of the business greatly exceeds the amount of all allowable claims and interests. A sales process in bankruptcy will allow the Debtor to maximize the value of its assets for the benefit of all parties in interest," Wachob stated in the affidavit.
The company has filed several "first day motions" seeking court approval to continue its normal business operations during the bankruptcy process, including requests to use cash collateral, maintain existing bank accounts, pay certain taxes and fees, continue insurance programs, ensure utility services, and honor obligations to its employees.
Paragon operates with approximately 74 employees, of which 16 are salaried and 58 are paid hourly. The company spends approximately $55,000 weekly on hourly employee payroll and approximately $108,000 bi-monthly on salaried employee payroll.
The company is represented by Clayton D. Ketter and Jason A. Sansone of Phillips Murrah P.C. The case is proceeding in the United States Bankruptcy Court for the Eastern District of Oklahoma as Case No. 25-80433-PRT.
This article was prepared using Stretto Conductor, our new AI-powered assistant that's here to help. Stretto Conductor was able to create this summary of a 13 page court filing in less than a minute. Always review the underlying docket filings for accurate information. The information and responses generated by Stretto Conductor may contain errors or inaccuracies and should not be relied upon as a substitute for professional or legal advice.