Eagle Ford Shale midstreamer Southcross Energy Partners LP expects to emerge from voluntary bankruptcy in a few days after a plan of reorganization was approved.
The Dallas operator, which had filed for bankruptcy last spring, said the U.S. Bankruptcy Court for the District of Delaware had confirmed the revamp. Approval allows Southcross to emerge from Chapter 11 by the end of January as a privately held company no longer listed on any public market.
“The court’s confirmation of our plan positions us to emerge as a stronger, more profitable standalone gathering and processing business,” said CEO James W. Swent III. “We are moving forward with a strengthened financial position and facilities that are strategically located in the Eagle Ford Shale region.
“We are excited about the opportunities we see to reinvest in the business, build out our capabilities and drive growth through our complementary suite of gas gathering, processing, treating, fractionation and marketing of residue gas and natural gas liquids products…”
Through the court-supervised process, the company sold a natural gas pipeline network in Corpus Christi, TX, to Kinder Morgan Inc. Southcross also sold Magnolia Infrastructure Holdings LLC assets in Mississippi and Alabama for $31.5 million. In November Southcross also acquired the Lancaster Gathering and Treating System from Southcross Holdings LP.
The go-forward operations now include the Lone Star and Woodsboro gas processing plants, Bonnie View fractionation facility, as well as the Lancaster and Valley Wells gathering and treating systems.
“On behalf of the entire Southcross team, I also want to express our gratitude to our customers, suppliers and business partners for their continued support over the past several months,” Swent said.
Legal counsel are Davis Polk & Wardwell LLP and Morris, Nichols, Arsht & Tunnell LLP. Alvarez & Marsal is serving as restructuring adviser, and Evercore is serving as financial adviser.