Creditors of EdgeMarc Energy Holdings LLC have been blaming Energy Transfer Partners LP for the failure of a Pennsylvania fracking project for months, according to newly public court papers, WSJ Pro Bankruptcy reported. Kept under seal while EdgeMarc tried to find a buyer for the fracking project, the documents filed in U.S. Bankruptcy Court in Wilmington, Del., came to light this week, under pressure from an affiliate of Goldman Sachs Group Inc. that holds a stake in EdgeMarc. The fracker filed for bankruptcy in May 2019, ruined by fallout from the September 2018 explosion of a portion of the Revolution pipeline, a conduit Energy Transfer was building to get EdgeMarc’s gas to market. The company, top lender KeyBank NA, Energy Transfer and the official creditors committee are due in court tomorrow to seek approval of a settlement that will end the bankruptcy infighting, in exchange for enough money to avoid having EdgeMarc’s chapter 11 case fall apart. Under the terms of the proposed settlement, KeyBank will take over the Pennsylvania fracking site and EdgeMarc will surrender its claims against Energy Transfer. Creditors are abandoning demands to sue, in exchange for cash to help cover their losses from the failed project, according to court papers.
