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Court schedules vote of Buccaneer plan
A bankruptcy court is allowing Buccaneer Energy ltd. to sell its “de minimis” assets.
The recent order from the U.S. Bankruptcy Court for the Southern District of Texas establishes procedures for Buccaneer and its subsidiaries to sell or abandon any assets valued at less than $3,000. The procedures require Buccaneer to provide at least 10 business days of notice before completing any transaction. The notice must describe the asset being sold, identify the buyer and list the purchase price, among other details.
The total value of all de minimis assets sold this way cannot exceed $200,000.
Doesn’t cover interests in properties The order only allows Buccaneer to sell assets it owns outright, and doesn’t cover the interest Buccaneer may own in properties, such as the Endeavour jack-up drilling rig. If Buccaneer claims that it owns some asset related to the rig, the company must provide the owners of the rig with notice of its intentions and the owners are allowed to object.
The procedures for Buccaneer to sell larger assets in its portfolio continue to play out.
The court recently approved the package of information Buccaneer put forward for holding an auction to sell “substantially all” of its assets. The creditors must vote on the plan before it can be implemented. The creditors must submit their ballots by Aug. 22 and Buccaneer must report on the results of the vote by Aug. 25, according to the court.
The creditors also have until Aug. 27 to object to a disclosure statement attached to a proposed plan for distributing the funds collected through a sale of the assets. The statement is meant to elucidate how the distribution plan would work. Some creditors objected to an earlier version of the statement, saying it was inadequate and premature.
- Eric Lidji
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