Chapter 11 Circumstances
After months of declining gas prices, in early 2016, Azure Midstream Partners, LP (“AMP”), the public partnership, suffered a contractual default from its largest customer that severely impaired the company’s cash flow. This – in turn – drove the partnership out of compliance with its bank covenants, and led to a series of forbearances from the bank group while management began to evaluate options.
AMP dramatically improved the balance sheet and streamlined operations. In 2016 alone, AMP reduced debt by $55 million (from $225 million to $170 million) while Azure's commercial team continued to capture new business (despite the challenging environment).