Murphy Energy asks court to appoint Chapter 11 trustee to manage case

By Caroline Salls

Pittsburgh, Jan. 24 – Murphy Energy Corp. asked the U.S. Bankruptcy Court for the Northern District of Texas to appoint a Chapter 11 trustee to manage the company and evaluate the next step for the bankruptcy case, according to a motion filed Tuesday.

Murphy said its asset sales leave two options in its bankruptcy cases, including continuing in Chapter 11 and working toward an orderly liquidation of the estates’ remaining causes of action through a Chapter 11 plan or converting the case to allow a Chapter 7 trustee to administer those actions.

However, because the Murphy Energy debtors will not have the access to cash or other funding after Jan. 31, the Chapter 11 plan option “may not be feasible other than through the appointment of a Chapter 11 trustee,” the motion said.

The company said its unsecured creditors could receive some benefits through the appointment of a Chapter 11 trustee, rather than conversion of the cases.

In addition, Murphy said conversion could increase administrative costs and delay distributions to creditors.

Murphy Energy said the official committee of unsecured creditors appointed for its case opposes conversion at this time.

Murphy Energy is a Tulsa, Okla.-based privately owned integrated midstream provider of transportation, storage and marketing services for crude oil, natural gas liquids and condensates. The company filed bankruptcy on Oct. 5 under Chapter 11 case number 16-33971.

© 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.