Southland Royalty gets 90-day extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., Oct. 5 – Southland Royalty Co. LLC obtained a 90-day extension of the exclusive periods to file a Chapter 11 plan and solicit votes, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The court extended the plan filing period to Dec. 21 from Sept. 23 and the solicitation period to Feb. 24 from Nov. 24.

Southland said in its motion that it needs additional time to advance certain litigations.

A trial began on Sept. 21 with Wamsutter LLC, under which Southland is seeking declaratory and other relief relating to some gas gathering agreements by and between Southland and Wamsutter and other interests claimed by Wamsutter, which have a direct impact on the Southland’s sale process and ability to reorganize.

In addition, about 57 entities have asserted some form of statutory lien against the debtor’s assets. On July 17, the debtor commenced 44 adversary proceedings seeking a declaratory judgment as to the validity, priority and extent of certain statutory oil and gas liens associated with about $32.5 million in asserted claims.

Under the scheduling order, fact and expert discovery will conclude no earlier than Jan. 15, 2021.

In the meantime, Southland said it is working with the defendants in the adversary proceedings to resolve the actions consensually where possible.

Fort Worth-based Southland is an upstream energy company. The company filed bankruptcy on Jan. 27, 2020 under Chapter 11 case number 20-10158.

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