ATP Oil gets OK to sell hydrocarbon production payment for $15 million

By Lisa Kerner

Charlotte, N.C., July 19 - ATP Oil & Gas Corp. was granted court approval for the proposed $15 million sale of a hydrocarbon production payment, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

Buyers include Avenue International Master, LP; Avenue Investments, LP; Credit Suisse Loan Funding LLC; FPA Crescent Fund; FPA Hawkeye-7; FPA Value Partners Fund; and Hawkeye Fund LLC.

As previously reported, the sale will provide cash essential for the continued operation of the company until the sale of substantially all of ATP's assets closes. Credit Suisse agreed to pay $690.8 million for ATP's assets, including $45 million in cash to satisfy legitimate liens on assets that are ranked senior to the debtor-in-possession loan claims and the difference between the adjusted purchase price and the closing cash payment, if a positive number, by a credit bid of a portion of the value of the DIP loan claims.

The court conditionally approved the sale on June 21, and the companies expect the sale to close in late August.

ATP Oil & Gas is a Houston-based offshore oil and gas development and production company focused on the Gulf of Mexico, the Mediterranean Sea and the North Sea. The company filed for bankruptcy on Aug. 17, 2012 under Chapter 11 case number 12-36187.

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