New Delaware Chapter 11 Filing – Southcross Energy Partners, L.P. et al. (Lead Case No. 19-10702)
Southcross Energy Partners, L.P. (OTCMKTS: SXEE), along with twenty-six affiliates and subsidiaries, has filed a petition for relief under chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 19-10702). Southcross is a midstream provider of services to the natural gas industry, whose operations are concentrated in the Eagle Ford Shale region of South Texas. A press release issued by Southcross further explains that Southcross enters chapter 11 intending to engage in a marketing process for the sale of substantially all of its assets, but may ultimately engage in a standalone restructuring. According to the First Day Declaration, Southcross—whose “business depends almost entirely on the demand for processing of newly extracted natural gas”—has filed as a result of the continued headwinds facing the natural gas industry. The First Day Declaration further explains that Southcross intends to pay all of its trade creditors in the ordinary course of business and is seeking approval of a $255 million DIP Financing facility provided by certain of its prepetition lenders, which will include up to $127.5 million in new money. Kurtzman Carson Consultants is the proposed claims and noticing agent. The cases have been assigned to the Honorable Mary F. Walrath.
Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.
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