Simpson Thacher represented Morgan Stanley Capital Group Inc. as sole lender under Shoreline Energy LLC’s pre-petition first lien revolving credit facility in Shoreline’s recently consummated Chapter 11 bankruptcy case. Simpson Thacher also represented Morgan Stanley as administrative agent and sole lender in connection with Shoreline’s $50 million senior secured debtor-in-possession facility. Shoreline filed for protection under Chapter 11 of the Bankruptcy Code on November 2, 2016.
Morgan Stanley and HPS Investment Partners partnered to acquire a majority of Shoreline’s producing assets through a credit bid under section 363 of the Bankruptcy Code. Morgan Stanley will hold second lien loans, preferred equity and a minority share of common equity in the newly formed purchasing entity (with HPS Investment Partners as the majority owner). The sale of assets was approved by the Bankruptcy Court for the Southern District of Texas on February 24, 2017, and the sale closed on March 7, 2017. Simultaneously with the sale, Shoreline will liquidate its remaining assets.
Shoreline was an independent oil and gas company engaged in exploring, acquiring and operating oil and natural gas properties located along the southern coast of Louisiana and onshore in Texas and Louisiana.
The Simpson Thacher team included Sandy Qusba, Soogy Lee, Nick Baker, Alex Cushman and Jon Endean (Bankruptcy & Restructuring); Robert Rabalais, Brian Minyard, Alex Lebow and Thomas Boyd (Banking & Credit); Chris May, Jim Cross and Justin Thekkekara (M&A); and Jonathan Goldstein and Brian Mendick (Tax).