Operations Continuing Without Interruption
Receives Court Approval of "First Day" Motions
to Support Normal Business Operations
Granted Interim Approval to Pay All Vendors and Suppliers in Full
Granted Interim Approval to Access up to $85
Million of DIP Financing
Dallas, TX— April 9, 2019—Southcross Energy Partners, L.P. (OTC:
SXEEQ) ("Southcross" or "the Company") today provided
an update on its court-supervised restructuring process.
The Company's operations across its asset base continue in the
normal course and have been uninterrupted since the April 1, 2019 Chapter 11
filing. Southcross is continuing to provide customers the quality service they
expect from the Company and to pay all pre- and post-petition amounts due to
its suppliers and vendors.
In addition, the Company had a
successful First Day hearing in which it received approvals from the U.S.
Bankruptcy Court for the District of Delaware (the "Court") for motions that
are intended to support the Company's business. In particular, the Court
provided interim approvals that enable the Company to:
to up to $85 million of the Company's $255 million in debtor-in-possession ("DIP")
financing, which will be used to support operations through the restructuring
process. The Company intends to seek final approval to access the remainder of
the DIP financing at a hearing that is scheduled for May 7, 2019. The Company
already received $30 million of this amount;
all vendors and suppliers in full for all goods received and services provided
to the Company prior to the filing date. The Company will also continue
to pay all vendors and suppliers in full for all goods received and services
provided on or after the filing date, in the normal course; and
paying wages and salaries and other normal-course benefits to its employees.
"We have achieved a positive start to our restructuring process
and have ample liquidity to continue operating as normal throughout this
process. We look forward to continuing to work with our vendors, suppliers and
business partners and to providing our customers the high levels of service
they have come to expect from us. Again, I want to thank all our key stakeholders
for their continued support," said James W. Swent III, Chairman, President and
Chief Executive Officer of Southcross Energy Partners, L.P.
Court filings and other information related to the
court-supervised proceedings are available at a website administered by the
Company's claims agent, KCC, at www.kccllc.net/southcrossenergy. Additional
information is also available by calling (866) 967-0671 (US/Canada) or (310)
Davis Polk & Wardwell LLP and Morris, Nichols, Arsht & Tunnell
are serving as legal counsel to Southcross, Alvarez & Marsal is serving as
restructuring advisor and Evercore is serving as financial advisor.
Energy Partners, L.P.
Southcross Energy Partners, L.P. is a master limited partnership that
provides natural gas gathering, processing, treating, compression and
transportation services and NGL fractionation and transportation services. It
also sources, purchases, transports and sells natural gas and NGLs. Its assets
are located in South Texas, Mississippi and Alabama and include two cryogenic
gas processing plants, a fractionation facility and approximately 3,100 miles
of pipeline. The South Texas assets are located in or near the Eagle Ford shale
region. Southcross is headquartered in Dallas, Texas.
news release and accompanying statements may contain forward-looking
statements. All statements that are not
statements of historical facts, including statements regarding our
restructuring process, our Chapter 11 proceedings, our operations, our
evaluation of a range of options, including a possible sale of the business,
the divestiture of certain assets or a standalone restructuring plan, our
financial position, future growth, and the potential emergence by us as a
viable, more profitable company, and our intent to make all vendor and supplier
payments are forward-looking statements.
We have used the words "anticipate," "believe," "could," "estimate,"
"expect," "intend," "may," "plan," "predict," "project," "should," "will,"
"would", "potential," and similar terms and phrases to identify forward-looking
statements in this news release.
Although we believe that the assumptions underlying our forward-looking
statements are reasonable, any of these assumptions could be inaccurate, and,
therefore, we cannot assure you that the forward-looking statements included
herein will prove to be accurate. These
forward-looking statements reflect our intentions, plans, expectations,
assumptions and beliefs about future events and are subject to risks,
uncertainties and other factors, many of which are outside our control. Actual results and trends in the future may
differ materially from those suggested or implied by the forward-looking
statements depending on a variety of factors including: the Partnership's
significant indebtedness, the restructuring process, actions taken in our
Chapter 11 proceedings, and other risks described in greater detail in our
filings with the Securities and Exchange Commission ("SEC"). Please see the
Partnership's "Risk Factors" and other disclosures included in our Annual
Report on Form 10 K for the year ended December 31, 2018 and in subsequently
filed Forms 10-Q and 8-K. All future
written and oral forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by the previous
statements. The forward-looking
statements herein speak as of the date of this news release. The Partnership undertakes no obligation to
update any information contained herein or to publicly release the results of
any revisions to any forward-looking statements that may be made to reflect
events or circumstances that occur, or that we become aware of, after the date
of this news release.