Register, or Login to view the article
Ferrellgas Partners, L.P. (together with its operating partnership, Ferrellgas, L.P.) and subsidiaries, announced on December 11, 2020 that it has entered into an agreement with a substantial majority of its noteholders that enables the Company to continue to be an employee-owned enterprise and move forward with a stronger balance sheet. The Transaction Support Agreement executed between the Company’s parent master limited partnership, Ferrellgas Partners, L.P., Ferrellgas Partners Finance Corp. and its noteholders will permit Ferrellgas to remain an independent, employee-owned business under current management while restructuring substantially all of its debt. To implement the TSA, the Parent MLP (Ferrellgas Partners, L.P.) and Parent Finance, which have no employees and no operations, intend to file a “prepackaged” Chapter 11 case in several weeks. The operating partnership (Ferrellgas, L.P.) will not be filing for Chapter 11, will not be impacted by the Parent MLP’s Chapter 11 filing and will operate as usual throughout the financial restructuring process.
While operations continue as normal, pursuant to the transactions contemplated in the TSA, the debt of the Parent MLP and Parent Finance will be eliminated, approximately $1.5 billion of debt of the operating partnership will be refinanced and over $1 billion of new capital will be raised by the operating partnership.
James E. Ferrell, Chairman of the Ferrellgas Board of Directors, Interim President and Chief Executive Officer says: “This agreement is an important milestone to allow us to eliminate debt overhang, strengthen our financial position, and partner with our institutional noteholders that recognize the value and growth potential in our enterprise. Importantly, this deal will permit our current management to implement the necessary business plans to grow our enterprise for the benefit of our employee-owners and other stakeholders. All of this will be accomplished without any disruption to our operations.”
Read more Bankruptcy News