Murphy Energy Chapter 11 trustee appointment motion approved by court

By Caroline Salls

Pittsburgh, Feb. 3 – Murphy Energy Corp.’s motion for appointment of a Chapter 11 trustee to manage the company and evaluate the next step for its bankruptcy case was granted Thursday by the U.S. Bankruptcy Court for the Northern District of Texas.

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.

Friday’s order requires any trustee who is appointed to be eligible to continue to serve if any of the Murphy Energy cases are converted.

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.

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