TULSA, Okla.–(BUSINESS WIRE)– Today, Cypress Environmental Partners, LP (NYSE: CELP) (“Cypress” or the “Company”) announced that it has filed for Chapter 11 bankruptcy and entered into a restructuring with its senior senior lender, a subsidiary of Argonaut Private Equity (“Argonaut”), which is expected to pay off approximately $58 million in debt. The petition was filed in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. Paul Hastings LLP is acting as legal counsel.
Judge Isgur issued a series of interim orders on “day one” motions that will facilitate the continuation of normal business operations and Cypress’s reorganization efforts, including the continued payment of employee salaries and other obligations. . In addition, the Court has heard Cypress’s motion for emergency order and has set a hearing date for June 21, 2022 to consider both Cypress’s pre-motion solicitation and confirmation of its pre-packaged reorganization plan. .
Cypress also secured a $5 million debtor-in-possession financing facility from Argonaut which, combined with cash from operations, would provide sufficient liquidity during the Chapter 11 proceeding to continue operations as usual. Installation is subject to court approval.
“With this important first step, we expect our plan to be confirmed before the end of June to free up our valued employees from being distracted so they can focus solely on serving our customers,” said Peter C. Boylan III, Chairman, President and CEO of Cypress.
Cypress filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code on May 8, 2022 with the United States Bankruptcy Court for the Southern District of Texas, Division of Houston. The file number is 22-90039. More information about Cypress’s Chapter 11 filing is available on the Internet at http://www.kccllc.net/Cypress, including “day one” motions, related orders and other documents filed in court. The NYSE filed a Form 25 with the SEC on May 9, 2022 to delist our units. Cypress plans to file a Form 15 to deregister the units on May 19, 2022.
This press release contains “forward-looking statements” relating to future events. Forward-looking statements contain words such as “expect”, “anticipate”, “could”, “should”, “intend”, “plan”, “believe”, “seek”, “see” , “may”, “will”, “would”, or “target”. Forward-looking statements are based on management’s current expectations, beliefs, assumptions and estimates and may include, for example, statements regarding the Company’s procedures under Chapter 11 (“Chapter 11 Matters”). , the Company’s ability to complete the Reorganization Transaction and its ability to continue to operate in the ordinary course while the Chapter 11 matters are ongoing. These statements are subject to important risks, uncertainties and assumptions that are difficult to predict and could cause actual results to differ materially and adversely from those expressed or implied by the forward-looking statements, including the risks and uncertainties regarding the Company’s ability to successfully complete a Chapter 11 restructuring, including: the completion of the Reorganization Transaction or an alternative restructuring; the potential adverse effects of Chapter 11 cases on the Company’s liquidity and results of operations; the Company’s ability to obtain timely approval by the bankruptcy court with respect to petitions filed in Chapter 11 cases; objections to the recapitalization process or other pleadings filed that may prolong Chapter 11 cases; employee attrition and the Company’s ability to retain senior management and other key personnel due to distractions and uncertainties imposed in part by Chapter 11 cases; the Company’s ability to comply with financing agreements, including the DIP facility; the Company’s ability to maintain relationships with its tenants, suppliers, customers, employees, sponsors and other third parties and regulatory authorities following Chapter 11 events; the effects of Chapter 11 cases on the company and on the interests of various constituents, including holders of common stock and other equity securities of the company; bankruptcy court decisions in Chapter 11 cases, including approvals of the terms and conditions of the reorganization transaction and the outcome of Chapter 11 cases generally; the length of time the company will operate under Chapter 11 protection and the continued availability of operating capital during the duration of Chapter 11 cases; risks associated with third-party claims in Chapter 11 cases, which may interfere with the Company’s ability to complete the reorganization transaction or alternative restructuring; increased administrative and legal costs associated with the Chapter 11 process; potential delays in the Chapter 11 process due to the effects of the COVID-19 virus; and other litigation and risks inherent in a bankruptcy process. Forward-looking statements are also subject to the risk factors and cautionary statements described from time to time in the company’s filings with the United States Securities and Exchange Commission, including those in the company’s most recent Annual Report on Form 10. -K and any update. about it in the company’s quarterly reports on Form 10-Q and current reports on Form 8-K. These risks and uncertainties may cause actual future results to differ materially from those expressed in these forward-looking statements. The Company is under no obligation to update or revise these forward-looking statements and does not undertake to do so.
The Company cautions that trading in the Company’s securities during the pendency of Chapter 11 matters is highly speculative and involves substantial risks. The trading prices of the Company’s securities may bear little or no relation to the effective recovery, if any, by the holders of the Company’s securities in Chapter 11 Cases. other equity securities could suffer a total loss on their investment, depending on the outcome of Chapter 11 cases.
ABOUT CYPRESS ENVIRONMENTAL PARTNERS, LP
Cypress Environmental Partners, LP is a master limited partnership that provides critical environmental services to the utility and energy industries, including pipeline and infrastructure inspection, NDE testing and environmental support services. online integrity across the United States. Cypress also provides environmental services to upstream and midstream energy companies and their suppliers in North Dakota, including water treatment, hydrocarbon recovery and disposal in Class II injection wells of the EPA to protect our groundwater. Cypress works closely with its customers to help them protect people, property and the environment, and to help them comply with increasingly complex and stringent rules and regulations. Cypress is headquartered in Tulsa, Oklahoma.
About Argonaut Private Equity
Founded in 2002, Argonaut Private Equity is a Tulsa-based private equity firm with over $2 billion of capital deployed in direct investments in the manufacturing and industrial sectors. Argonaut partners with companies to develop a strategy to accelerate growth and improve operations. In January, Argonaut completed the first closing of Argonaut Private Equity Fund V, continuing its tradition of generating attractive investment returns through a disciplined approach and aligning interests with those of its investors and business partners.
Cypress Environmental Partners, LP – Jeff Herbers – Vice President and Chief Financial Officer
[email protected]or 918-947-5730
Source: Cypress Environmental Partners, LP