Judge David R. Jones of the U.S. Bankruptcy Court for the Southern District of Texas authorized Echo Energy Partners I, LLC’s bidding procedures in connection with the auction sale of all of its oil and gas assets, including but not limited to, interests in oil and gas leases, related inventory and equipment, and various personal property.
The salient terms of the Bidding Procedures are:
a. Bid Deadline: June 11, 2020 at 4:00 p.m. (CT)
b. Initial Bid: Each bid must identify the cash consideration to be paid for relevant Assets or the amount of any credit bid as allowed thereunder.
c. Deposit: Each bid must be accompanied by a purchase deposit equal to or greater than 10% of the total Purchase Price.
d. Auction: In the event that the Debtor timely receives one or more Qualifying Bids, the Debtor will conduct the Auction starting at 10:00 a.m. (CT) on June 15, 2020 at the law offices of Bracewell LLP, 711 Louisiana Street, Suite 2300, Houston, Texas 77002.
e. Bid Increments: $100,000
f. Sale Hearing: June 17, 2020 at 2:30 p.m. (CT)
g. Sale Objection Deadline: June 11, 2020 at 4:00 p.m. (CT)
h. The rights of all parties in interest, including the Agent and the Debtor’s operators, to submit a credit bid in accordance with Section 363(k) of the Bankruptcy Code are reserved. The Agent (or its designee), on behalf of the Pre-Petition Lenders or Post-Petition Lenders, as applicable, will be permitted to submit a credit bid at the Auction, and the Agent will notify the Debtor of its intention to potentially credit bid no later than the Bid Deadline.
The Assets sold pursuant to the Bidding Procedures will be sold free and clear of all liens claims and encumbrances in their then-present condition, “as is, where is, with all faults, and without any warranty whatsoever, express or implied.”
Not later than five business days after the entry of the Order, the Debtor will cause the Sale Notice to be published once in a national edition of a United States newspaper.
The assumption and assignment procedures set forth in the Sale Motion are approved and made part of the Order as if fully set forth therein. The Debtor will cause the Cure Notice to be provided to any counterparties to any Assigned Contract by May 12, 2020. The Cure Notice Objection Deadline is June 11, 2020 at 4:00 p.m. (CT).
All time periods set forth in the Order will be calculated in accordance with Bankruptcy Rule 9006(a).
If an official committee of unsecured creditors is appointed, the Committee may file a motion to seek relief from the Order. Any such motion will be filed no later than 15 days after the Committee’s appointment (or otherwise be time barred), and all parties-in-interests (including the Debtor) reserve the right to object to and oppose any such motion filed by the Committee.
A copy of the Bidding Procedures is available at https://tinyurl.com/yc99oepx from PacerMonitor.com free of charge.
About Echo Energy Partners I
Echo Energy Partners I, LLC is an upstream oil and gas firm that partners with financial institutions, pension funds, family offices, and high net worth individuals. It currently manages assets in the SCOOP, STACK, Midland, and Delaware basins in Oklahoma and Texas.
Echo Energy Partners I sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Case No. 20-31920) on March 24, 2020. At the time of the filing, the Debtor was estimated to have assets of between $50 million and $100 million and liabilities of between $100 million and $500 million.
Judge David R. Jones oversees the case.
The Debtor tapped BRACEWELL LLP as legal counsel; Stretto as claims agent and administrative advisor; and Opportune LLP as restructuring advisor. Gregg Laswell a director at Opportune’s subsidiary, Dacarba LLC, is the Debtor’s chief restructuring officer.