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Saratoga Resources bid procedures approved; asset sale hearing May 5
By Caroline Salls
Pittsburgh, April 12 – Saratoga Resources, Inc. requested court approval to conduct a sale of all or substantially all of its assets, according to a company news release.
The bid procedures related to the sale were approved by the U.S. Bankruptcy Court for the Western District of Louisiana on April 7.
As previously reported, Energy Reserves Group II, LLC agreed to serve as the lead bidder.
The consideration to be paid by Energy Reserves will include satisfaction and discharging of liens securing Saratoga’s first-lien notes either by credit bid or cash, payment in cash of $1.1 million of fees and expenses due under a cash collateral order carve-out, assumption and payment in full of $2.2 million in ad valorem taxes due on the assets in question as of May 31 and any ad valorem taxes accruing after that date, including any interest and penalties due.
Saratoga said Energy Reserves holds $54.6 million in secured claims against the company plus accrued interest on the first-lien notes, as well as $97.6 million plus accrued interest on the second-lien notes.
Competing bids are due five days before the May 5 sale hearing.
If competing bids are received, an auction will be held. Bids at auction must be made in minimum increments of $100,000.
The proposed sale does not include the company’s federal leases and other assets that may be excluded by agreement between Saratoga and its first-lien lender.
The sale hearing is scheduled for May 5.
Saratoga, based in Austin, Texas, is an oil and gas exploration and production company that filed for bankruptcy April 1, 2009. Its Chapter 11 case number is 09-50748.
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