Southcross Energy Partners gives update on Chapter 11 case progress

By Caroline Salls

Pittsburgh, April 9 – Southcross Energy Partners LP provided an update Tuesday on its court-supervised restructuring process, noting that operations across its asset base have been uninterrupted since it filed for Chapter 11 bankruptcy protection on April 1 in the U.S. Bankruptcy Court for the District of Delaware.

According to a news release, Southcross is continuing to pay all pre-bankruptcy and post-bankruptcy amounts due to suppliers and vendors.

In addition, the company said it had a successful first-day hearing in which it received court approvals for motions intended to support the company’s business, including interim approval that allows Southcross to access up to $85 million of a proposed $255 million in debtor-in-possession financing.

Southcross said the financing will be used to support operations through the restructuring process. The company intends to seek final approval to access the remainder of the DIP financing at a hearing scheduled for May 7.

The first-day orders also allow Southcross to pay all vendors and suppliers in full for all goods received and services provided before the bankruptcy filing and to continue paying wages and salaries and other normal-course benefits to its employees.

“We have achieved a positive start to our restructuring process and have ample liquidity to continue operating as normal throughout this process,” chairman, president and chief executive officer James W. Swent III said in the release.

Southcross is a Dallas-based midstream services company. The Chapter 11 case number is 19-10702.

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