Alta Mesa: Kingfisher joins Chapter 11 cases to complete asset sale

By Caroline Salls

Pittsburgh, Jan. 13 – Alta Mesa Resources Inc. affiliate Kingfisher Midstream, LLC and its subsidiaries have filed Chapter 11 cases and asked the U.S. Bankruptcy Court for the Southern District of Texas on Monday to jointly administer the Kingfisher cases with those of Alta Mesa.

Kingfisher chief financial officer John C. Regan said in a statement filed with the court that Kingfisher selected an affiliate of an indirect equity owner of the debtors, BCE-Mach III LLC, as the stalking horse bidder for its assets on Dec. 31.

On the same day, the initial Alta Mesa debtors entered a separate purchase and sale agreement with BCE.

Regan said the stalking horse agreements are dependent on Kingfisher closing its sale on substantially the same timeline set by the court-approved Alta Mesa bid procedures.

However, Regan said the court denied BCE’s request for a break-up fee and expense reimbursement in connection with the Alta Mesa purchase agreement, constituting a termination event under the Alta Mesa agreement.

Despite this, Regan said BCE-Mach has agreed to proceed with the joint sale provided that the auction occurs by Jan. 15.

As a result, Regan said the Kingfisher debtors filed bankruptcy “to swiftly implement a comprehensive restructuring through a sale of substantially all of their assets,” which they were required to do under their stalking horse purchase agreement.

Alta Mesa is an onshore oil and gas company based in Houston. It filed for bankruptcy on Sept. 11. The Chapter 11 case number is 19-35133.

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