Glass Mountain Pipeline Holdings, with the support of its equity sponsor, GEPIF Glass Mountain Pipeline, and lenders holding 66.97% of the company’s revolving and term loans, entered into a restructuring support agreement that provides for the elimination of more than $230 million in debt from its balance sheet and a $45 million investment from the sponsor._x000D_
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Pursuant to the RSA, lenders will receive their pro rata share of a $69.1 million first lien term loan facility issued by a new borrower entity that will be the direct parent of Glass Mountain and Navigator Panhandle HoldCo and a cash payment of $44 million. The new term loan facility will be secured by the collateral for the existing loans and a first-priority pledge of the equity interests of the new borrower, its direct subsidiaries and each guarantor._x000D_
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Glass Mountain and its advisors are continuing to work with the company’s lenders to gain 100% support of the transaction such that the RSA can be effectuated on an out-of-court basis this month. To the extent that threshold cannot be achieved, the parties to the RSA already agreed to a prepackaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. While Glass Mountain hopes to receive the support of 100% of its lenders, the company anticipates that the Chapter 11 plan, pursuant to which all general unsecured claims would be unimpaired and paid in full, will be confirmed and consummated soon. The company does not anticipate any change in its day-to-day operations or the services it provides to its customers throughout this process._x000D_
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Paul, Weiss, Rifkind, Wharton & Garrison and Gray Reed & McGraw are serving as legal counsel to Glass Mountain and PJT Partners is serving as the company’s investment banker._x000D_
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Akin Gump Strauss Hauer & Feld is serving as legal counsel and Perella Weinberg Partners and Tudor, Pickering, Holt & Co. are serving as financial advisors to an ad hoc group of consenting lenders.
Forward for Specialty Finance
