Southcross Energy’s Settlement With Parent Approved

Bankrupt pipeline operator Southcross Energy Partners L.P. won court approval of its contract dispute settlement with the parent company, paving the way for an asset auction with a new date.

In the settlement filed, Southcross Energy will receive $22.5 million in cash from the parent and equity stakes in non-bankrupt affiliates.

Southcross Energy, which filed for bankruptcy in April, sued its ultimate parent Southcross Holdings Borrower LP and other subsidiaries in August, accusing them of making fraudulent transfers and violating an agreement related to the gathering and processing of natural gas.

The company settled because ongoing litigation could be prolonged ...