Southcross Energy Partners LP is seeking restructuring through bankruptcy and will evaluate a range of options during the process, including the sale of the business, divestiture of assets or a standalone restructuring plan, the Eagle Ford Shale processor said Monday.
The Dallas-based partnership and its subsidiaries have filed voluntary petitions for relief under Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware. Southcross expects to continue to operate during the court-supervised process.
"The company continues to engage in constructive discussions with its lenders and other stakeholders regarding the terms of a financial restructuring plan and is focused on achieving a resolution as expeditiously as possible," Southcross said.
The company said it has received a commitment for $255 million in debtor-in-possession financing from its lenders.
The announcement comes eight months after Southcross terminated a merger plan and agreement to become a subsidiary of American Midstream Partners LP. In February, Southcross moved trading in its common units from the New York Stock Exchange (NYSE) to the OTCQX, after the partnership's unit price had fallen below the NYSE's continued listing standard for an average closing price of less than $1.00 over a consecutive 30 trading-day period.
Southcross, which provides midstream and natural gas liquids services, has assets in the Eagle Ford Shale in South Texas, as well as Mississippi and Alabama. Southcross also sources, purchases, transports and sells gas and liquids, with two gas processing plants, one fractionation plant and an estimated 3,100 miles of pipeline.