DALLAS, Texas, March 22, 2016 (GLOBE NEWSWIRE) -- Southcross Holdings LP (“Holdings” or “Company”) announced today that it has entered into a Restructuring Support Agreement with its owners, a majority of its senior lenders and all of the Class B preferred equity holders and, as part of this agreement, commenced a solicitation of votes for a prepackaged plan of reorganization (the “POR”). Holdings intends to commence cases under chapter 11 of the United States Bankruptcy Code to implement the POR, which is expected to result in a significant reduction in outstanding debt along with a new equity investment from certain of its existing equity holders.
A key component of the POR is that all trade creditors, suppliers and contractors of Holdings are expected to be paid in the ordinary course of business and any amounts owed by Holdings to these parties will not be impacted by the contemplated Chapter 11 filing.
Southcross Energy Partners, L.P. and its subsidiaries are not included in the planned Chapter 11 filing and their operations and employees, customers, suppliers, partners, and other constituents are not affected. Southcross Energy Partners GP, LLC is also not a part of the anticipated filing.
The Company has set up a hotline to answer questions about the transaction highlighted in this press release. The hotline can be accessed by dialing +1 (800) 708-8796. The Company has also posted FAQs on its website at http://www.southcrossholdings.com.
About Southcross Holdings LP
Southcross Holdings LP, through its subsidiary Southcross Holdings Borrower LP, owns 100% of Southcross Energy Partners GP, LLC, the general partner of Southcross, as well as a portion of Southcross Energy’s common units, all of Southcross Energy’s subordinated units and all of Southcross Energy’s Class B convertible units. Holdings also owns natural gas gathering and treating assets as well as NGL pipelines and fractionation facilities in South Texas.
Jennifer E. Mercer
Epiq Strategic Communications for Southcross Holdings LP
Southcross Energy Partners, L.P.