[Just filed. Developing story.] May 22, 2023 – Privately held Paradox Resources, LLC and six affiliated debtors (together “Paradox” or the “Debtors”) filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case No. 23-90558 (Judge David R. Jones ). The Houston-based Debtors, "a Texas-based independent midstream company primarily focused on helium processing and carbon capture, utilization and sequestration," are represented by Matthew Okin of Okin Adams Bartlett Curry LLP. Further Board authorized appointments include: (i) Stout Risius Ross, LLC as restructuring advisors (and Stout's Douglas J. Brickley to serve as CRO) and (ii) Donlin, Recano & Company, Inc. as claims agent.
The Debtors’ lead petition notes between 1,000 and 5,000 creditors; estimated assets between $50.0mn and $100.0mn; and estimated liabilities between $50.0mn and $100.0mn. Documents filed with the Court list the Debtors’ three largest unsecured creditors as (i) Office Of Natural Resources [Denver, CO] ($1.5mn "Government" claim), (ii) Elk Petroleum Aneth, LLC ($1.3mn trade claim) and (iii) San Juan County [Utah] Tax Assessor ($846k tax claim).
Board minutes filed with the Debtors' lead Petition suggest this is a free fall, with recently appointed CRO Douglas J Brickley given a number of prospective powers that would enable him to negotiate DIP financing, a restructuring support agreement and a potential sale, with no suggestion that any of these activities are well advanced.
About the Debtors
According to the Debtors: “Paradox Midstream is a Texas-based independent midstream company primarily focused on helium processing and carbon capture, utilization and sequestration. Acquired in 2017, Paradox Midstream’s core asset is the Lisbon Valley Gas Plant located in southeast Utah. The Lisbon Valley plant and its 500-mile pipeline system connect the Four Corners region of the US (New Mexico, Arizona, Utah and Colorado) and is strategically positioned to serve producers with the following capabilities:
- Helium extraction and liquefaction
- Natural gas gathering, processing, treating, dehydration and compression
- Carbon capture, utilization and sequestration."
Read more Bankruptcy News
The post Paradox Resources, LLC – Privately Held, Houston-Based Midstream with Focus on Helium Processing and Carbon Capture Files for Bankruptcy with Over $50mn of Liabilities appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.