Strike bid procedures draw objection from creditor Eagle Capital

By Sarah Lizee

Olympia, Wash., Dec. 16 – Strike, LLC’s bid procedures for the sale of substantially all of its assets drew an objection Wednesday from unsecured creditor Eagle Capital Corp., according to a filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Eagle Capital said the court should deny the bid procedures motion because the proposed relief would be “detrimental to the creditors and render impossible a fully competitive bidding process.”

“The current ‘emergency’ proposal provides a sale price consisting of a credit bid, assumption of the DIP lender’s claims and costs to wind down the estate, leaving no funds for distribution to unsecured creditors,” Eagle Capital said in the objection.

The creditor said that if the court were to grant the debtors’ relief as quickly as Dec. 22 as they’ve asked, Eagle and the other unsecured creditors wouldn’t have enough time to investigate the debtors, their assets and liabilities, and the identity and potential interests of the proposed stalking horse bidder, Strike Acquisition LLC.

“The investigation into the identity and interests of Strike Acquisition LLC is more crucial given that the debtors have provided no disclosures about this entity and have not demonstrated that it is a disinterested party,” Eagle Capital said.

As previously reported, the company entered into a stalking horse agreement with Strike Acquisition, an affiliate of American Industrial Partners (AIP), the company’s largest debtholder. The agreement is subject to higher and better offers.

The purchase price under the stalking horse agreement includes a $115 million credit bid of debt under the company’s pre-petition senior loan facility and proposed $29 million in debtor-in-possession financing from AIP, the assumption of certain liabilities, and cash, which is anticipated to be enough to effectuate an orderly wind-down of the debtors’ estates under a Chapter 11 plan of liquidation.

The stalking horse agreement provides for a $1.5 million expense reimbursement.

Under the proposed bid procedures, the bid deadline is 5 p.m. ET on Jan. 14, an auction will be held on Jan. 18 and a sale hearing will be held on Jan. 19.

A hearing on the proposed bid procedures is scheduled for Dec. 22.

Strike is based in The Woodlands, Tex., and is a full-service pipeline, facilities and energy infrastructure solutions provider. The company filed Chapter 11 bankruptcy on Dec. 6 under case number 21-90054.

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