MTE Holdings MDC debtors, loan agent named in mineral lien rights suit

By Caroline Salls

Pittsburgh, April 29 – MTE Holdings LLC debtors MDC Energy LLC, MDC Texas Operator LLC and MDC Reeves Energy LLC and lender agent Natixis, New York Branch were named as defendants in a lawsuit filed by Alamo Pressure Pumping, LLC that asks the U.S. Bankruptcy Court for the District of Delaware to determine the validity, priority and extent of its statutory mineral liens on some of the debtors’ properties.

According to the complaint filed Tuesday, Alamo is specifically asking the court to rule that it holds valid, fully perfected and enforceable statutory mineral liens on property located in Reeves County, Tex., and to rule that its liens are senior in priority to the lien claims of the pre-bankruptcy secured parties in MTE’s Chapter 11 case.

Alamo alleged that the MDC debtor defendants “have habitually slow paid and/or short paid Alamo” in connection with leases related to the property, and, as a result, they owed Alamo for at least $19.71 million in fracking services as of the bankruptcy filing date, not including accrued interest, costs, fees and other charges.

“At no time since November 2017 have debtor defendants paid their account receivables in full,” the lawsuit said.

MTE is a Midland, Tex.-based holding company. The company filed bankruptcy on Oct. 22, 2019 under Chapter 11 case number 19-12269.

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