Escalera Resources and Societe Generale filed with the U.S. Bankruptcy Court an objection to the motion of the U.S. Trustee assigned to the case seeking to dismiss or convert the Chapter 11 case.
Escalera Resources explains, “Debtor and Debtor’s professionals Seaport Global Securities, LLC have been working assiduously to sell Debtor’s Atlantic Rim assets. To that end, Debtor has forgone a predetermined minimum bid for its properties. As a result, as of the date of this Objection, a number of interested parties with the financial capability of closing on a purchase are working at completing their due diligence. Debtor expects one or more offers by February 16, 2018. Debtor is also negotiating a backup bid with Warren Resources. Debtor is prepared to negotiate a formal purchase and sale agreement with the selected buyer prior to February 23, 2018, with a goal of filing a motion under §363 of the Bankruptcy Code prior to February 23 as well.”
In addition, “In the event Debtor has a sufficiently definitive offer in hand, Debtor will request a continuance of the hearing on the Motion in order to complete the sale process, whether the sale is to an interested purchaser or closing on a backup bid from Warren Resources. In the event Debtor does not have a sufficiently definitive offer in hand, Debtor is informed by its senior secured lenders that they are likely to terminate Debtor’s ability to use cash collateral. If use of cash collateral is terminated, Debtor will be forced to cease operations, and dismissal or conversion would be appropriate.”
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