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Permico Midstream files Chapter 11 bankruptcy; management replaced
By Caroline Salls
Pittsburgh, May 4 – Permico Midstream Partners Holdings, LLC filed Chapter 11 bankruptcy on Monday in the U.S. Bankruptcy Court for the Southern District of Texas.
The company said in a motion for turnover of estate property that a failure to obtain project equity financing and project debt financing and other breaches constituted removal events under Permico’s limited liability company agreement with HGC Midstream INV LLC.
As a result, the company said HGC exercised its rights to replace management and authorized the Chapter 11 filing in an effort to address issues related to a dispute over the ownership of a pipe and to complete a restructuring/liquidating transaction that maximizes value for all stakeholders.
Permico said HGC exercised its right before the bankruptcy filing to remove Permico Energia, LLC as the manager of Permico Midstream Partners Holdings, remove the members of the holding company’s board of directors appointed by Permico Energia and Conquista Energy Services, LLC and appoint Sehwan Park, Haeyoung Lee and Howoo Shin as members of the board. The newly constituted board voted to authorize the Chapter 11 filing.
According to court documents, Permico has $100 million to $500 million in both assets and debt.
The company’s largest unsecured creditors are Corpac Steel Products Corp. of Miami, with a $95.78 million trade claim; Edgen Murray Corp. of Houston, with an $81.66 million trade claim; and Contract Land Staff of Sugar Land, Tex., with a $2.25 million trade claim.
The company is represented in its Chapter 11 cases by Hunton Andrews Kurth LLP.
Permico Midstream is a Houston-based crude petroleum and natural gas company. The Chapter 11 case number is 20-32437.
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