Southcross plan solicitation approved; confirmation hearing Jan. 27

By Caroline Salls

Pittsburgh, Jan. 7 – Southcross Energy Partners, LP obtained court approval to continue to solicit votes on its amended Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Jan. 27.

As previously reported, the plan calls for the liquidation of the Southcross debtors’ assets and the distribution of sale proceeds, or to the extent a sale is not completed, a restructuring that will deleverage the company’s balance sheet and leave it positioned to succeed in the highly competitive natural gas midstream industry.

Under the plan, administrative expense claims, priority tax claims and priority non-tax claims will be paid in full in cash.

Other secured claims will be paid in full in cash or paid in the ordinary course of business.

Holders of pre-bankruptcy term loan claims and pre-bankruptcy revolving credit facility claims will receive new common stock if the proposed sale is not completed or a portion of the sale proceeds.

Holders of general unsecured claims, sponsor note claims, subordinated claims and existing interests will receive no distribution.

Southcross, a Dallas-based midstream services company, filed bankruptcy on April 1, 2019. The Chapter 11 case number is 19-10702.

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