Ad hoc committee of term lenders negotiate Southcross's prepackaged chapter 11 plan and obtain confirmation 15 days after filing

Client(s) Southcross Energy Term Lender Group

Jones Day represented an ad hoc committee of secured term loan lenders in connection with the chapter 11 cases of Southcross Holdings LP and its affiliated debtors. At the time of Southcross's chapter 11 filing, the total amount outstanding under the term loan was approximately $566 million. Prior to the chapter 11 filing, the ad hoc committee negotiated and entered into a restructuring support agreement with Southcross and its first priority revolving lenders, equity sponsors and the holders of certain preferred equity interests. In accordance with this agreement, the Debtors solicited a prepackaged chapter 11 plan that the ad hoc committee and the vast majority of the other term loan lenders approved. The plan provided the term loan lenders with 33.34 percent of the equity in the reorganized company and a new term loan facility in the amount of $75 million. Remarkably, Southcross's chapter 11 plan received approval from the United States Bankruptcy Court (Southern District of Texas) 15 days after Southcross's chapter 11 filing. Jones Day also assisted with the Tranche B term loan under a $125 million credit agreement that also included a $50 million Tranche A term loan and letter of credit facility.