Southland Royalty seeks court approval to extend DIP facility

By Sarah Lizee

Olympia, Wash., Nov. 6 – Southland Royalty Co. LLC is seeking court approval of an amendment that would extend its $70 million debtor-in-possession facility to Jan. 15 from Nov. 30, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The debtor said that when the maturity date was initially set, the parties expected that it would allow for enough time for a resolution of the Williams litigation and for the debtors to resume their sale process and exit Chapter 11.

“The fifth amendment provides the debtor with additional time to address its disputes with Williams and maximize value available for the estate via a sale or the pursuit of another plan transaction,” the company said in its motion.

A hearing is scheduled for Nov. 10.

Fort Worth-based Southland is an upstream energy company. The company filed bankruptcy on Jan. 27 under Chapter 11 case number 20-10158.

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