Court: EQT may participate in Stone Energy Appalachia sale process

By Caroline Salls

Pittsburgh, Feb. 1 – A group of Stone Energy Corp. noteholders’ motion asking the U.S. Bankruptcy Court for the Southern District of Texas to revise the already approved bid procedures for the sale of the company’s assets to open up the bidding to EQT Corp. was approved Tuesday.

As previously reported, the noteholders said the court-approved bid procedures only allowed the stalking horse bidder and one additional party to participate in the bidding process for Stone Energy’s Appalachia assets.

If EQT does decide to submit a bid, the noteholders said it would be in a position to do so by the Feb. 3 bid deadline set in the bid procedures order.

“The ad hoc noteholder group believes that no party will be unfairly prejudiced by adding EQT to the auction process and, to the contrary, believes that the addition of a third reputable, financially capable party could ultimately result in an increased purchase price for the Appalachia assets – an outcome that would inure to the benefit of all stakeholders in these cases,” the motion said.

Stone Energy is a Lafayette, La., oil and gas exploration and production company. The company filed bankruptcy on Dec. 14 under Chapter 11 case number 16-36390.

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