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Chaparral Energy Procedures Approval Sought

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Chaparral Energy filed with the U.S. Bankruptcy Court a motion for entry of orders establishing bidding and sale procedures and approving the sale of assets.

The motion explains, “In order to maximize the value of the assets that are the subject of this Motion, the Debtors intend to pursue a bidding and auction process extending over several weeks, which will likely result in the closing of a sale (the ‘Sale’) occurring after the effective date of the Plan (the ‘Plan Effective Date’).”

In addition, “Since the Adversary Proceeding will almost certainly be pending and unresolved as of the Plan Effective Date, the Debtors are requesting that the Court retain jurisdiction to hear all matters related to or arising under or in connection with the Adversary Proceeding, this Motion, the bidding procedures, and the Sale to ensure that the Debtors and the Reorganized Debtor obtain the highest and otherwise best price possible under the circumstances…incentivize potential bidders and thereby maximize the potential value of the Assets, the Debtors request that they be authorized, but not required, in an exercise of their reasonable business judgment and in consultation with the Consultation Parties, to designate one or more Qualified Bids as a stalking horse bid (each, a ‘Stalking Horse Bid’) and to execute an Asset Purchase Agreement with such Stalking Horse Bidder in connection with the proposed sale of the Assets, at any time before the commencement of the Auction. Upon execution of an Asset Purchase Agreement with any Stalking Horse Bidder, the Debtors will file a notice with the Court of such Stalking Horse Bidder and Asset Purchase Agreement.”

The Court scheduled a March 9, 2017 hearing to consider the motion, with objections due by March 2, 2017.

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