Vanguard Natural Resources filed with the U.S. Bankruptcy Court a notice of proposed sale involving excess assets pursuant to excess asset sale procedures. The Seller (Specific Debtor Entity) is Eagle Rock Acquisition Partnership II.
The motion explains, “Forge Energy, the Buyer has agreed to pay $2,475,000 under the Sale Agreement….Buyer will pay a deposit of 10% of the purchase price upon signing. o The transaction will be effective as of February 1, 2017 (‘Effective Time’) and the purchase price will be adjusted (i) upward for the value of the hydrocarbons in storage above the pipeline connections at the Effective Time and expenses incurred by Seller with respect to the Excess Assets following the Effective Time and (ii) downward by the proceeds received by Seller for sale of hydrocarbons after the Effective Time (net of burdens on production), uncured title defects, the value of Excess Assets excluded from the transaction and Seller’s share of ad valorem taxes through the Effective Time. o Buyer will have an opportunity to examine title to the Excess Assets for 15 business days after signing and, to the extent Buyer identifies title defects, will be entitled to a purchase price reduction for such defects, subject to (i) a $25,000 de minimis threshold, (ii) a deductible of 2% of the purchase price and (iii) Seller’s right to cure.”
The Court scheduled an objection deadline on April 12, 2017.
Read more VNR bankruptcy news.