Your behavior appears to be a little unusual. Please verify that you are not a bot.


Ferrellgas Partners commences Chapter 11 proceedings

January 11, 2021 By    

Ferrellgas Partners LP and its subsidiary Ferrellgas Partners Finance Corp. commenced voluntary prepackaged Chapter 11 cases in the U.S. Bankruptcy Court for the District of Delaware. The company had announced a plan in December to strengthen its financial position.

Photo by LP Gas staff

Photo by LP Gas staff

According to the company, Ferrellgas’ operating partnership, Ferrellgas LP, is not included in the Chapter 11 filing, has ample liquidity and is operating normally. Ferrellgas says it will continue to satisfy its obligations to employees, customers, vendors, suppliers, distributors and other partners without interruption.

“Today’s announcement is an important step forward in significantly strengthening our balance sheets and positioning our company for long-term success,” says James E. Ferrell, chairman of the Ferrellgas board of directors, president and CEO.

Pursuant to a previously announced Transaction Support Agreement, the debt of Ferrellgas Partners and Ferrellgas Partners Finance Corp. will be eliminated; approximately $1.5 billion of Ferrellgas’ debt will be refinanced; and Ferrellgas LP will raise over $1 billion of new capital.

“We are pleased this process will enable Ferrellgas to remain an independent, employee-owned company as we continue growing our strong and profitable core business,” Ferrell says. “We remain focused on serving our nearly 800,000 customers throughout the United States and Puerto Rico, and on continuing to expand our premier Blue Rhino tank exchange business.”

Ferrell adds, “We appreciate the continued support of our institutional noteholders, which will enable us to complete our financial restructuring on an expedited basis. I also want to thank our dedicated team of nearly 5,000 nationwide employees for their hard work and unwavering dedication to our success. We look forward to emerging a financially stronger company, and we are excited to build on our near 100-year-old history of innovation as one of the nation’s largest propane dealers for many years to come.”

Squire Patton Boggs LLP is serving as legal counsel to Ferrellgas and Moelis & Co. LLC is serving as financial adviser. Davis Polk & Wardwell LLP and Ducera Partners LLC are advising the ad hoc group of Ferrellgas Partners noteholders.

Featured photo by LP Gas staff

This article is tagged with , , and posted in News

About the Author:

Brian Richesson is the editor in chief of LP Gas Magazine. Contact him at brichesson@northcoastmedia.net or 216-706-3748.

Comments are currently closed.