Cypress Environmental Partners, L.P. (NYSE: CELP) confirmed that it has decided to pursue a court-supervised restructuring. Cypress inked a Restructuring Support Agreement (the RSA) with Argonaut Private Equity (Argonaut) on May 8, 2022. As per the agreement, Argonaut decided to vote in favor of a joint pre-packaged plan of reorganization of the Company and its subsidiaries under Chapter 11 of the U.S. Bankruptcy Code.
The Reorganization Transaction will give the Reorganized Company a fresh start by deleveraging its balance sheet, establishing a strong platform for post-emergence growth, and safeguarding over 350 high-paying positions for the Company's employees. During these processes, Cypress aims to conduct business as usual with minimal inconvenience.
Cypress says it expects that the Reorganization Transaction will result in its outstanding common and Series A preferred units (including accrued and unpaid distributions) having no value, given the amount of its outstanding senior secured debt, which presently sums to $58.1 million. As a result, Cypress expects the New York Stock Exchange (the NYSE) to declare its decision to delist Cypress' common units, which are currently traded under the ticker "CELP" on the NYSE.
Furthermore, the Company is planning to file a Form 15 with the SEC to deliberately deregister its Common Units and cease its reporting responsibilities under the Securities Exchange Act of 1934, as amended, following the delisting of the Common Units. Cypress would be unable to register its Quarterly Report on Form 10-Q for the three months ended March 31, 2022, before the SEC filing deadline of May 16, 2022, due to the need for Bankruptcy Court permission to interact or maintain professional services firms, including independent registered public accounting firms.
The company stated that it is moving forward with the next phase of its previously disclosed restructuring, and it is proud of its employees who never stopped servicing its wonderful clients. Cypress will reemerge as a strong, reformed firm that is debt-free and focused on serving and developing its business. Argonaut is a well-known private equity business situated in Tulsa, Oklahoma. Its board of directors is thrilled that Argonaut is enthusiastic about recapitalizing and expanding Cypress, as well as that Argonaut is devoted to its valued employees and the Tulsa community.