Energy Distress Trickles Down to Midstream Sector

Jan 13, 2016 - Private Equity Beat

Trouble at a private equity-backed midstream company shows how distress in the energy industry has begun to flow beyond the production sector.

Southcross Energy Partners LP, which gathers, processes and transports natural gas in the Eagle Ford shale in Texas, said last week it would suspend quarterly cash distributions to its unit holders and hired restructuring advisers. Southcross is structured as a publicly traded master limited partnership whose holding company is owned by Charlesbank...