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.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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