Marion Energy closes credit bid sale of all assets to lender entities

By Kali Hays

New York, June 1 – Marion Energy Inc. closed the credit bid sale of substantially all of its assets to Utah Gas Solutions LLC and Utah Gas Solutions II LLC on June 1, according to a Monday notice with the U.S. Bankruptcy Court for the District of Utah.

As previously reported, the Utah Gas Solutions entities were formed by lender TCS II Funding Solutions, LLC for the purposes of the credit bid transaction.

The purchase price is comprised of $38.24 million, plus the principal amount of any debtor-in-possession advances made by TCS to Marion Energy under its DIP loan after the date of the purchase agreement and the assumption or payment by buyers of assumed liabilities, as well as the release of all remaining amounts of a specified TCS claim and the DIP loan.

Despite court approval of the sale, TCS was able to abandon the sale in favor of an alternate transaction.

As a result, Marion was required to provide notice to all parties whether TCS elected to close the sale, needed more time to decide or elected to terminate the sale transaction.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.