Creditors Take Aim At Driller Southland Royalty's $70M DIP

Law360 (February 20, 2020, 3:09 PM EST) -- Unsecured creditors told the Delaware bankruptcy court late Wednesday that oil and gas driller Southland Royalty Company LLC's $70 million post-petition financing is unfairly set up to benefit secured prepetition lenders over other creditors.

In an objection filed with U.S. Bankruptcy Judge Karen B. Owens, the official committee of unsecured creditors asserts that an order that would finalize the debtor-in-possession financing should be denied unless changes are made to address the committee’s concerns.

“The DIP facility as currently constructed serves exclusively to improve the position of the prepetition [reserve-based lending] secured parties and eliminate any impediments to their reaping the entire...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Beta
Ask a question!