Southcross Energy Partners gets OK of settlement of FL Rich lawsuit

By Caroline Salls

Pittsburgh, Sept. 25 – Southcross Energy Partners, LP obtained court approval of a settlement with non-debtor Southcross Holdings Borrower, LP in connection with a lawsuit filed by FL Rich Gas Services, LP, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Under the settlement, the Southcross Holdings entities will contribute to the debtors 100% of the equity interests of Frio LaSalle Pipeline, LP, Frio LaSalle GP, LLC, the sole general partner of Frio LaSalle Pipeline, LP, Southcross Midstream Utility, LP and Southcross Midstream T/U GP, LLC, the sole general partner of Southcross Midstream Utility, LP.

In addition, the Southcross entities will make a $22.5 million separate cash contribution to the debtors, and FL Rich Gas Services, LP will be granted a $60 million secured claim on substantially all of the assets of the acquired companies.

Also under the settlement, some contracts between the Southcross Holdings entities and their non-debtor affiliates and specified debtors will be terminated.

Southcross, a Dallas-based midstream services company, filed bankruptcy on April 1. The Chapter 11 case number is 19-10702.

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