Gastar ‘encourages’ all-cash bids for company, eyes January emergence

By Caroline Salls

Pittsburgh, Nov. 16 – Gastar Exploration Inc. said in connection with its previously announced extended public marketing process seeking proposals to acquire the company that it “encourages all-cash proposals that can be closed quickly,” according to a Friday news release.

Specifically, the company said it is seeking all-cash proposals to acquire a 100% ownership in a transaction that would close on or before the expected effective date of its Chapter 11 plan in early January.

According to the release, any proposals that call for restructuring or modifying Gastar’s existing capital structure or any proposals to combine Gastar with another entity where some or all of the merger consideration is proposed to be equity in the combined company “will very likely be rejected as not viable.”

Gastar said it previously distributed a process letter seeking proposals and establishing a deadline of Oct. 1 to submit proposals, but it did not receive any actionable proposals by that date.

As a result, the company extended the deadline for the submission of proposals to Dec. 17.

Gastar Exploration is Houston-based oil and natural gas company. The company filed for bankruptcy on Oct. 31 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 18-36057.

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