Montco Offshore sets sale procedures, gets $131.1 million credit bid

By Caroline Salls

Pittsburgh, Nov. 27 – Montco Offshore, Inc. requested court approval of the bid procedures for the proposed sale of its assets, according to a motion filed Nov. 24 with the U.S. Bankruptcy Court for the Southern District of Texas.

Falcon Global USA LLC will serve as the stalking horse bidder. According to the bid procedures motion, Falcon has agreed to purchase the assets in exchange for a $131,099,286 credit bid, which represents the expected outstanding obligations and debt of Montco under its debtor-in-possession and first-lien facilities upon closing.

As part of the proposed transaction, the company said Falcon and the DIP facility and first-lien lenders are expected to finalize an agreement under which the stalking horse bidder will purchase and assume Montco’s secured obligations in exchange for Falcon entering into a new credit facility immediately upon closing.

If Falcon is not the high bidder for the assets, Montco will pay it a break-up fee equal to 3% of the credit bid amount and reimburse up to $1 million of its sale-related expenses.

Competing bids are due by 5 p.m. ET on Dec. 14.

An auction will be held on Dec. 15, if necessary. Bids at auction must be made in minimum increments of $100,000.

The company has requested a Dec. 4 hearing.

Houston-based Montco operates lift boats for the offshore energy industry. The company filed for bankruptcy on March 17, 2017 under Chapter 11 case number 17-31646.

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