EnCap ordered to assume or reject purchase agreement by Jan. 27

By Caroline Salls

Pittsburgh, Dec. 24 - EnCap Golf Holdings, LLC has been ordered to assume or reject a purchase agreement between the company and the New Jersey Meadowlands Commission by Jan. 27, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of New Jersey.

On Nov. 17, the commission asked the court to force the company to assume or reject the agreement for the purchase and sale of the commission's BCUA/Transit Site, Baler Site and I-E Landfill Lease in 2006.

In the motion, the commission claimed it is apparent that EnCap has determined the purchase agreement and the property subject to the agreement are not part of its going-forward business plan.

Specifically, the agency noted that EnCap's disclosure statement and plan of reorganization do not address the agreement.

The commission also said that EnCap has breached the agreement by missing a $1.43 million payment due Sept. 30. EnCap is scheduled to make periodic payments totaling $33.7 million to the commission through March 2014.

EnCap, a Cherokee Investment Partners subsidiary, filed for bankruptcy on May 8, 2008. Its Chapter 11 case number is 08-18581.

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