Axip Energy Services and six of its affiliated companies filed for Chapter 11 bankruptcy protection in the Southern District of Texas on Sunday while also revealing that the company is selling most of its assets to a North Texas energy company for more than $161 million.
The Houston-headquartered natural gas compression company that focuses primarily in the Permian Basin states in court documents that it has $240 million in liabilities, but that it has agreed to divest most of its assets to Service Compression of Fort Worth.
Bankruptcy records also show that Axip Energy has secured a debtor-in-possession financing of nearly $105 million, which would allow it to operate throughout the restructuring.
Axip Energy has hired Vinson & Elkins and its partner Paul Heath as lead bankruptcy counsel, Evercore Group as its investment banker and Ankura Consulting as its restructuring advisor. Other V&E lawyers involved include Matthew J. Pyeatt and Trevor G. Spears.
Court records filed Monday show that Service Compression has hired Willkie Farr and Houston partner Jennifer Hardy as its lead legal advisor and Moelis & Company as its investment banker.
Simpson Thacher is advising JPMorgan Chase.
The restructuring has been assigned to Houston Bankruptcy Judge Christopher Lopez.
The case is In re Axip Energy Services, No. 26-90338.