Cypress Environmental Partners, L.P. announced yesterday that it filed for chapter 11 protection and reached a restructuring support agreement with its priority senior secured lender, an affiliate of Argonaut Private Equity, that is expected to clear approximately $58 million worth of debt, according to a company press release. The petition was filed in the U.S. Bankruptcy Court for the Southern District of Texas, Houston division. Paul Hastings LLP is serving as legal counsel. Judge Marvin Isgur entered a series of interim orders on "first day" motions that will facilitate Cypress’s continued normal business operations and reorganization efforts, including continuing to pay employee wages and other obligations. In addition, the Court heard Cypress’s emergency scheduling motion and set a hearing date of June 21, 2022 to consider both Cypress’s prepetition solicitation and confirmation of its pre-packaged plan of reorganization. Cypress also secured a $5 million debtor-in-possession financing facility from Argonaut that, combined with cash from operations, would provide enough liquidity during the chapter 11 proceedings to continue business as usual. The facility is subject to court approval.
