Marion Energy procedures for possible cash asset sale allowed by court

By Kali Hays

New York, April 23 – Marion Energy Inc. received approval of bid procedures related to the sale of substantially all company assets on Thursday from the U.S. Bankruptcy Court for the District of Utah.

As previously reported, Marion already requested court approval of a $40 million credit bid sale of its assets to two newly formed affiliates of TCS II Funding Solutions, LLC – Utah Gas Solutions LLC and Utah Gas Solutions II LLC.

The purchase offer from TCS is subject to higher and better offers and though Marion is not “presently aware of or expecting” any additional offers for its assets, any qualified bid is due by 4 p.m. ET on April 28, according to the motion.

Under the approved procedures, a qualified bidder must offer cash in an amount greater than $40 million, accompanied by a $4 million cash deposit, and commit to closing the sale by May 30.

Bids that require payment of a breakup fee or expense reimbursement will not be considered.

If one or more qualified bids are received by the bid deadline, an auction will be held on April 30. If no qualified bids are received, Marion will seek court approval of the credit bid sale to TCS.

Marion is an Allen, Texas-based natural gas exploration company that filed for bankruptcy on Oct. 31, 2014. The Chapter 11 case number is 14-31632.

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