Filing Alert: Axip Chapter 11
Axip Energy Services Files Chapter 11 in Southern District of Texas
Update (Feb. 23, 2026): A comprehensive case summary is now available for the Chapter 11 bankruptcy filing of Axip Energy Services, LP.
Axip Energy Services, LP and its debtor affiliates⁽¹⁾, a Houston, TX-based provider of natural gas compression services to upstream and midstream customers, filed for Chapter 11 protection on Feb. 22 in the U.S. Bankruptcy Court for the Southern District of Texas.
The company attributes the filing to a liquidity crisis precipitated by an aggressive post-acquisition growth strategy and subsequent customer challenges. Specifically, the Chapter 7 liquidation of a major Gulf of Mexico customer in Q1 2024 stranded over 15% of the debtors' available horsepower, eroding millions in EBITDA and leaving certain assets economically unrecoverable. Liquidity was further constrained by the premature returns of electric compression units from certain customers and infrastructure delays that hampered redeployment. Following covenant pressure/defaults and an unsuccessful refinancing process in mid-2025, the debtors pivoted to a sale process and subsequently, determined that a Chapter 11 filing would be required.
The filing aims to consummate a Section 363 sale of substantially all assets for a base purchase price of approximately $161 million and the assumption of certain liabilities, with Service Compression, LLC serving as the stalking horse bidder pursuant to an Asset Purchase Agreement executed on Feb. 16, 2026. To fund the cases and bridge to closing, the debtors secured a DIP facility with JPMorgan Chase Bank, N.A., as agent. The facility provides approximately $25.5 million in new money and includes a roll-up converting the full balance of the Prepetition Superpriority Facility and approximately $66.2 million of Prepetition ABL obligations into DIP debt.
Axip Energy Services, LP reports $100 million to $500 million in both assets and liabilities. The filing indicates that no funds will be available for distribution to unsecured creditors after administrative expenses are paid. The case number is 26-90338.
⁽¹⁾ For a complete list of debtor entities, see the Chapter 11 Debtors table.
Chapter 11 Debtors
Top Unsecured Claims
Key Parties
Counsel:
- Paul E. Heath
Vinson & Elkins LLP
Email: [email protected]
Investment Banker:
- Evercore Group, L.L.C.
Financial Advisor / CRO:
- Ankura Consulting Group, LLC (Ben Chesters)
Claims Agent:
Bondoro Insights is continuing to monitor this case and will provide further coverage as appropriate.
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