Southcross’ Chapter 11 Plan Approved as Creditors Seize Equity

Southcross Energy Partners LP received court approval of its Chapter 11 plan, wiping out more than $500 million of debt and giving equity in the reorganized company to secured creditors.

The plan, approved Monday by Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware, could allow the Dallas-based natural gas processing and transportation company to emerge from bankruptcy by the end of the month.

Southcross’ plan will convert $438 million of pre-bankruptcy loan claims to new common stock shares. It converts $81.3 million of pre-bankruptcy claims from a revolving credit facility into new common ...