Houston-based Ascend Performance Material and eight of its affiliated businesses filed for Chapter 11 bankruptcy protection Monday citing $1 billion to $10 billion in liabilities, according to its filing in the Southern District of Texas.
Ascend, which is 93 percent owned by the private investment firm SK Capital Partners, said it plans to use the bankruptcy process to provide equity in the company to its lenders in exchange for the forgiveness of debt.
Ascend listed several Texas and Oklahoma energy companies as creditors, including:
- Citgo — $5.7 million;
- Altiva Petrochemicals — $3.3 million;
- Kinder Morgan — $2 million;
- Gulf Coast Water Authority — $1.8 million;
- Enterprise Products — $1.8 million
- Tivoli Midstream Holdings — $1.65 million; and
- BP Energy — Undetermined amount.
Ascend General Counsel Andrew Ralston, who is a former senior counsel at Valero Energy, selected Kirkland & Ellis and Bracewell to lead its Chapter 11 restructuring. Jason Cohen, a partner at Bracewell, filed the first-day petitions.
PJT Partners will serve as Ascend’s investment banker, FTI Consulting as its restructuring advisor and Deloitte as its tax advisor. Katten Muchin is counsel to a group of disinterested directors.
In a statement, Ascend CEO Phil McDivitt said the company has “been working with our lenders to define the best path forward for Ascend.”
“We expect that the restructuring will substantially reduce Ascend’s funded debt obligations and ensure that we are well-positioned to continue executing on our long-term strategy,” McDivitt said.
The case is In Re: Ascend Performance Materials Holdings, SDTX. Case no. 25-90127.