Southland Royalty seeks court approval to extend DIP facility again

By Sarah Lizee

Olympia, Wash., Jan. 6 – Southland Royalty Co. LLC is seeking court approval of an amendment that would extend its $70 million debtor-in-possession facility from Jan. 15, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the facility had been extended from Nov. 30 originally.

“This date was previously agreed with the DIP lenders to provide the estate with additional time to continue its reorganization efforts after the court’s ruling in the Williams litigation, and to choose a path to exit Chapter 11,” the company said in Tuesday’s motion.

“During this one-and-a-half-month extension, the parties have made good progress on defining the options for moving forward and building consensus.”

The company said it continues to facilitate discussions and believes that additional time to progress them is in the interest of the estate and all parties in interest.

Southland is seeking the agreement of the DIP lenders to grant the extension but does not yet have the extension in hand. The company said it filed the motion two weeks in advance to afford the court and parties in interest the full notice period to consider the request.

“Negotiation with the DIP lenders is ongoing, including regarding the term of the extension and any impact on availability,” the company said.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.