Azure Midstream Partners (f/k/a Marlin Midstream Partners) and 11 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, case number 17-30461. The Company, which is a limited partnership formed to develop, operate, and acquire midstream energy assets, is represented by Christopher Manuel Lopez of Weil Gotshal & Manges. These cases do not involve Azure Midstream Partners’ parent company: Azure Midstream Energy.
The Company announced that the filing was initiated in “its continuing efforts to manage its debt obligations and conserve its going concern value.” Azure Midstream Partners 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 related disclosure statement shortly. The Company reached a consensual agreement with its lenders, and they are supportive of the Company’s process, including the sale process.
I.J. “Chip” Berthelot, Azure Midstream Partners’ president and C.E.O., comments, “While we recognize this is disappointing news, Chapter 11 reorganization is the only solution that maximizes going concern value for all stakeholders. We will continue to operate the company and proceed through this process in a way that best preserves asset value for everyone with an interest.”
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