Axip Files for Chapter 11 as $240M Debt Spurs Asset Sale

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Court-Supervised Sale Seen as Only Path

Chesters said Service Compression’s offer emerged as the highest and best proposal. But because the $161 million bid would not fully satisfy Axip’s secured debt, a court-supervised Chapter 11 sale became necessary to close the transaction.

The debtor has retained Ankura Consulting Group as restructuring adviser and Evercore as investment banker.

Axip is represented by Paul E. Heath, Matthew J. Pyeatt, Trevor G. Spears, David S. Meyer and Jessica C. Peet of Vinson & Elkins LLP.

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As the bankruptcy case unfolds, Axip’s fate will hinge on whether the April auction draws a superior bid — or whether the stalking horse offer sets the final price for a company once poised for expansion but now seeking stability under new ownership.