New Source Energy trustee seeks approval of $10 million asset sale

By Caroline Salls

Pittsburgh, April 11 – New Source Energy Partners, LP Chapter 7 trustee David W. Carickhoff requested court approval of the bid procedures for the proposed $10 million sale of oil and gas interests, according to a motion filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

H&P Investments LLC is the stalking horse bidder.

If H&P is not the winning bidder for the assets, New Source will pay it a $300,000 break-up fee.

The trustee has proposed a bid deadline of 5 p.m. ET on May 18, a May 24 auction date and a June 2 sale hearing.

Competing bids must be for a minimum of $10.3 million. Subsequent bids at auction must be made in minimum increments of $100,000.

Based in Oklahoma City, New Source Energy is an independent oil and natural gas properties company. It filed for bankruptcy on March 15, 2016 under Chapter 7 case number 16-10642.

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