Some things to consider about the current IDR agreement between XTEX and XTXI (reposted from the XTEX board):
The last I remember--and this may have changed--management owned more XTXI than XTEX, and XTXI owns a big piece of XTEX.
The agreement between XTXI and XTEX can be re-written or amended. Both management and creditors would probably think this appropriate, given the many changes in circumstance since it was written. I'd expect that to happen well before XTEX is in position to make any distributions.
While XTEX has been selling assets, there is reason to question whether they have actually been generating cash in today's market, or how much. The reports I've read indicate XTEX was not only over-leveraged but that many of their assets were not earning their keep. When your carrying costs include 9% interest, selling assets can increase cash flow.
Also notice they haven't sold the crown jewels, and they've bought a couple assets that produce immediate cash flow. Don't you think their lenders needed to approve those purchases beforehand? And don't you think the lenders saw those immediate additions to cash flows?
None of this means Crosstex will survive, but when I look at management's actions over the past year and the changes in the market, I am much encouraged. And I think XTXI's IDRs will be worth more than the market expects today. Just to be sure, though, I own both!