After holding an auction Monday morning, the Australian independent is asking a federal bankruptcy court to approve the sale of its assets to Houston-based AIX Energy LLC.

The proposed $44 million sale price represents a credit bid, which allows a secured creditor to offer the amount of its debt against cash bids from other potential buyers.

A court-approved sale process allowed Buccaneer to either hold an auction or sell its assets directly to AIX Energy, should a solicitation fail to yield any qualified bids.

The only qualified bid came from the Miller Energy Resources Inc.-affiliate Cook Inlet Energy LLC, which offered $35 million for the properties in a bid made Oct. 24.

Buccaneer used the $44 million credit bid from AIX Energy as the opening bid for the auction. Cook Inlet Energy declined to increase its initial bid, which ended the auction.

Should the AIX Energy sale fall through, Buccaneer would sell the assets to Cook Inlet Energy for $35 million. Buccaneer is asking the court to approve both contingencies.

- ERIC LIDJI