The parent of pipeline operator Southcross Energy Partners LP filed for bankruptcy Sunday after reaching a deal with its owners and the majority of its lenders that will erase $700 million in debt off the company’s books, the Wall Street Journal reported today. Parent company Southcross Holdings LP filed a pre-packaged chapter 11 plan after creditors voted to approve the company’s restructuring proposal. The plan calls for the holding company’s owners to pump up to $170 million into the pipeline operator in return for two-thirds of the equity in the reorganized company. Read more. (Subscription required.)
Has the final shoe dropped for the E&P industry? A session at ABI’s 34th Annual Spring Meeting features experts discussing energy industry distress. Click here to register.
Get a better understanding of what happens when an oil, gas or other natural resources company goes bankrupt. Pre-order your copy of ABI’s recently updated When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy, Second Edition.
