Forbes Energy Services filed with the U.S. Bankruptcy Court a motion for an order (i) authorizing the assumption of asset purchase agreements; (ii) approving private sale of certain assets free and clear of liens, claims and interests thereunder and (iii) granting related relief.
The motion explains, “By this Motion, the Debtors seek authorization to assume and perform under certain prepetition agreements for the sale of certain excess, aged trucks and trailers in the ordinary course of the Debtors’ business. Assumption and performance of the agreements will generate more than $1.5 million and avoid a potential rejection damages claim that would be entitled to payment in full under the Debtors’ proposed prepackaged chapter 11 plan….On January 12, 2017, after engaging in arm’s length negotiations with the Buyer, TX Energy Services, LLC (TES) also entered into the Tractor Purchase Agreement for the sale of 142 of TES’s excess and aged tractors to the Buyer for cash consideration in the amount of $1,277,800.”
In addition, “The Sale is ‘as-is, where-is’ with no representations or warranties of any kind. The Debtors believe that the consideration to be received under the Purchase Agreements is fair value for the Assets. The Debtors solicited bids for the Assets and received multiple offers. The offer submitted by the Buyer was the highest bid. The Buyer is not an officer, director, shareholder, or other insider of the Debtors.” The Court scheduled a February 10, 2017 hearing on the motion, with objections due by January 30, 2017.
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