Southland Cleared to Circulate $252 Million Bankruptcy Sale Plan

Southland Royalty Co. LLC’s bankruptcy wind down plan, centered on a sale of its natural gas business to a Williams Companies affiliate, was cleared for a creditor vote.

In the sale, the affiliate, Wamsutter E&P LLC, will pay $148 million in cash and assume more than $100 million in liabilities.

Proceeds would repay an approximate $95 million bankruptcy loan and provide partial recoveries to pre-bankruptcy lenders and general unsecured creditors, according to the plan.

An unsecured creditors’ committee agreed to drop potential litigation claims and support the plan. Their claims waiver came after a deal with Southland’s lenders that guarantees ...