Azure Midstream Partners LP

• 1/30/17 Recap: Spurned on by the potential riches guaranteed by $105 crude oil and $3.68 natural gas, Azure Midstream Partners - a master limited partnership headquartered in Dallas - invested heavily in natural gas pipeline in 2015, incurring hundreds of millions of debt to fund the expansion. Shortly thereafter, oil sank to $26 and natural gas to $1.62. With the industry in turmoil, capex budgets contracted considerably and the company’s largest contract counterparties terminated or lapsed contracts (including Anadarko Petroleum Corporation), materially reducing EBITDA and triggering covenant defaults. Now, the company seeks to sell its assets in bankruptcy and liquidate the rest. Discussions with a stalking horse bidder hadn’t been finalized at the time of filing.
• Capital Structure: $175mm debt (Wells Fargo Bank NA)     
• Company Professionals:
  • Legal: Weil (Gary Holtzer, Robert Lemons, Charles Persons, Chris Lopez, Katherine Doorley, David Zubkis) & Vinson & Elkins LLP (Bradley Foxman)
  • Financial Advisor: Alvarez & Marsal LLC (Ed Mosley)
  • Investment Banker: Evercore Group LLC (Stephen Hannon)
  • Claims Agent: KCC (*click on company name for docket)
• Other Parties in Interest:
  • Wells Fargo Bank
    • Legal: Baker & McKenzie (James Donnell, Peter Goodman, Frank Grese)
    • Financial Advisor: RPA Advisors
  • M5 Midstream LLC
    • Locke Lorde LLP (Elizabeth Guffy)
  • Official Equity Committee (Wampanoag Capital LLC)
    • Legal: Brown Rudnick LLP (Howard Steel)

Updated 5/2/17