v3.3.1.900

SUBSEQUENT EVENTS | 12 Months Ended
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Dec. 31, 2015
SUBSEQUENT EVENTS |
SUBSEQUENT EVENTS | 16. SUBSEQUENT EVENTS On February 1, 2016, the Partnership announced a suspension of the distribution to unit holders for the quarterly period ended December 31, 2015. On February 19, 2016, the Partnership announced the resignation of W. Keith Maxwell III from the board of directors of Azure Midstream Partners GP, LLC. On March 29, 2016, the Partnership entered into the Third Amendment to the Credit Agreement. The Third Amendment waived the affirmative covenant that stated if the Partnership’s annual financial statements, prepared in accordance with generally accepted accounting standards, contained any going concern qualification an event of default would result, for the year ended December 31, 2015. Additionally, the Third Amendment waived certain other events of default until June 30, 2016. During the first quarter of 2016, AES was delinquent in paying amounts invoiced under its gathering and processing contracts, as well as its logistics contracts with subsidiaries of the Partnership. The contracts have provisions requiring AES to make payments based on MVCs. AES caused its bank to issue a $15.0 million letter of credit to the administrative agent under the Credit Agreement to secure the amount of its obligations under its logistics contracts. The Partnership’s General Partner has approved a settlement agreement with AES and its parent, NuDevco, to resolve these issues under the gathering and processing agreements and the logistics contracts. Principal terms of the settlement include: (i) AES cooperation in the administrative agent’s drawing down the full $15.0 million amount of the letter of credit, allowing proceeds from the draw to be applied to pay down debt under our Credit Agreement; (ii) the gathering and processing agreement and the logistics contracts are terminated effective as of January 1, 2016; (iii) NuDevco surrenders to the Partnership the 8,724,545 subordinated units, 1,939,265 common units and 10 IDR Units of the Partnership held by NuDevco or its subsidiary; (iv) the parties release each other from other claims in respect of the terminated contracts; and (v) AES will assign all of its rights and interests in third party contracts to Azure. The settlement agreement is subject to final approval from the lenders under the Credit Agreement.

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- Definition The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business. + References No definition available. + Details
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