Simpson Thacher represented Dixie Electric, LLC and its affiliates (the “Company”) in its Chapter 11 restructuring, which went effective December 21, 2018 after the Bankruptcy Court for the District of Delaware confirmed the Company’s pre-packaged plan of reorganization at a December 13 hearing. After commencing the pre-packaged Chapter 11 cases on November 2, 2018, Simpson Thacher guided the Company through its brief in-court restructuring process, which received approval from 100% of holders of claims that voted on the plan. The transaction fully extinguished approximately $300 million in principal amount of outstanding debt held by secured lenders (the “Secured Lenders”) and an unsecured lender (the “Unsecured Lender”). In exchange for extinguishing their claims, the Secured Lenders received 98.25% of the equity in reorganized Dixie and the Unsecured Lender received the remaining 1.75% (in each case subject to dilution by a management incentive plan). In addition, the Company entered into a new exit credit facility of $30 million provided by members of an ad hoc group of the Secured Lenders, the proceeds of which will be used to fund ongoing working capital and business operations.
Dixie, dba Expanse Energy Solutions, is an innovative leader in the oil, gas and industrial services sectors, facilitating upstream, midstream and downstream operations in the nation’s most prolific energy producing regions. Dixie excels in providing local service capabilities, efficient supply chain management and around-the-clock maintenance capabilities to the oil, gas and power industries.
The Simpson Thacher team included Elisha Graff, Kathrine McLendon, Nicholas Baker, Edward Linden and David Baruch (Restructuring and Bankruptcy); Christopher May and Jacqui Bogucki (M&A); Alden Millard, Mike Vernace, Leah Nudelman and Teresita Acedo (Banking and Credit); Risë Norman and Conor Colasurdo (Capital Markets); John Creed and Tyler Robbins (Tax); Larry Moss and Tatiana Mejia-Uribe (ECEB); Adeeb Fadil and Timothy Mulvihill (Environmental); Steven DeLott (Insurance); and Andrew Pagliughi (Blue Sky).