PostRock Energy’s Chapter 11 trustee filed with the U.S. Bankruptcy Court a motion to sell the Debtor’s interest in temporarily abandoned wells (TA Wells), free and clear of liens to Tiger Energy & Exploration.
The motion explains, “Though the TA Wells are not producing the estate continues to incur administrative costs with regard to the TA Wells. Further, the estates have a potential liability for the cost to plug and abandon the TA Wells. It is estimated the cost to eventually plug and abandon the TA Wells could exceed $2,000,000 (the ‘Plugging Liability’) ….The Trustee submits that the proposed sale of the Purchased Assets is a reasonable business decision in light of the circumstances and is in the best interest of the estate and its creditors.”
The motion continues, “Further, the Trustee submits that the proposed sale presents the best opportunity to realize the maximum value of the estate’s assets.” The motion continues, “Due to the necessity to facilitate the orderly and more importantly, timely sale of the Purchased Assets, the Trustee requests that the Court lift the stay provided by Federal Rule of Bankruptcy Procedure 6004(h) which provides that an order authorizing the sale of property is stayed for fourteen (14) days after the entry of such order, unless the Court orders otherwise. Given the sufficiency of notice to all parties in interest, the Trustee requests that the Court relieve them of the stay provided by the rule.”
The Court scheduled a November 16, 2016 hearing to consider the motion. Read more energy bankruptcy news.
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