Azure Midstream Partners LP (OTCQB: AZUR) and its affiliates and certain subsidiaries commenced Chapter 11 cases in the United States Bankruptcy Court for the Southern District of Texas. The company anticipates filing a motion to approve procedures for a sale of all or substantially all of its assets, as well as a Chapter 11 plan and accompanying disclosure statement shortly.
The company has reached a consensual agreement with the lenders under that certain Credit Agreement dated as of February 27, 2015 and the lenders are supportive of the company's process, including the sale process.
The company expects day-to-day operation to continue without interruption throughout the Court-supervised process. The company expects to maintain sufficient liquidity to maintain its business operations until such time as a sale is consummated.
The company has filed certain "first day" motions with the court to facilitate operating in the normal course throughout the court-supervised process. The company is seeking court approval this week to continue paying employees, trade creditors, suppliers, and contractors in the ordinary course of business.
These cases do not involve Azure's parent company, Azure Midstream Energy.
Alvarez & Marsal is serving as financial advisor to the company, Evercore Group LLC is serving as investment bankers to the company, and Weil, Gotshal & Manges LLP is serving as the company's legal advisor.