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Southcross Holdings Prepackaged Chapter 11 Bankruptcy

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According to the U.S. Bankruptcy Court docket, Southcross Holdings and 11 affiliated Debtors filed for Chapter 11 protection. The Company, which owns and operates gathering and fractionation assets in the midstream energy sector, is represented by Zack A. Clement PLLC.

Southcross Holdings is the parent company of Southcross Energy Partners GP, LLC and a major unitholder of publicly traded Southcross Energy Partners, L.P. Neither Southcross Energy Partners, LP and its subsidiaries nor Southcross Energy GP, LLC are included in the Chapter 11 filings. Southcross Holdings’ Chapter 11 petition indicates assets greater than $1 billion.

Concurrent with its Chapter 11 petition, the Company also filed a Joint Prepackaged Chapter 11 Plan and related Disclosure Statement, which explains, “After extensive, hard-fought negotiations, the Debtors, certain Revolving Lenders holding approximately 95 percent of the Revolving Facility Claims, certain Term Lenders holding approximately 68 percent of the Term Loan Facility Claims, holders of 100 percent of the Holdings Class B Interests, and holders of 100 percent of the Holdings Interests – including EIG and Tailwater as the Supporting Common Interest Holders – reached a global agreement for a consensual, balance-sheet restructuring to be implemented through a prepackaged chapter 11 plan of reorganization – namely, the Plan – that deleverages the Debtors by nearly 80 percent, provides immediate liquidity through a $170 million new money investment (including an $85 million DIP Facility), facilitates a much needed capital contribution to the MLP Entities, and minimizes the time and expense associated with the restructuring.”

The Disclosure Statement continues, “In exchange for this much-needed liquidity and other compromises contained in the Plan, the Supporting Common Interest Holders will receive 66.66 percent of the equity in Reorganized Holdings and 100 percent of the New Unsecured Notes; the Term Lenders will receive the remaining 33.34 percent of the equity in Reorganized Holdings under the Plan. The Plan maximizes the value of the Debtors’ assets, including certain estate causes of action the Debtors may have against the Supporting Common Interest Holders and their affiliates related to the Equity Commitment Letters….The Plan contemplates a global settlement of the Debtors’ and the Supporting Class B Interest Holders’ claims against the Supporting Common Interest Holders and their affiliates, pursuant to which the Debtors secured the $170 million new money investment that drives recoveries (in both quantum and form of consideration) for all of the Debtors’ stakeholders.”

Read more Southcross bankruptcy news.

The post Southcross Holdings Prepackaged Chapter 11 Bankruptcy appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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