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Buccaneer proposes reorganization; would repay unsecured creditors Buccaneer Energy Ltd. has proposed a reorganization plan.
Buccaneer Energy Ltd. has proposed a reorganization plan.
The bankrupt Australian independent and its eight subsidiaries have put forth a plan in the U. S. Bankruptcy Court for the Southern District of Texas for paying creditors.
For the plan to go ahead, it must first satisfy a long list of requirements set by the court, and it must also pass muster with certain classes of creditors, as determined by a vote.
Implementation of the plan would follow a proposed auction of the oil and gas assets held by Buccaneer and its eight subsidiaries. The companies, which have asked the court to consolidate their estates, are looking to hold the auction in early August. The plan would establish a liquidation trust to disperse assets collected during the auction.
Currently, creditors have until Sept. 29 to file claims, except for governmental entities, which have until Nov. 27 to file claims, according to filings. After eliminating liabilities held among the nine companies, Buccaneer and its subsidiaries currently owe nearly $30.8 million in outstanding liabilities to a long list of unsecured creditors.
AIX to be stalking horse The largest secured creditor, AIX Energy LLC, has agreed to be the stalking-horse bidder for the auction, committing to bid some $58 million for “substantially all” of Buccaneer’s assets, should such an auction take place. The unpaid balance on an AIX Energy revolving credit facility is also about $58 million. The facility matured June 30.
The court-appointed official committee of unsecured creditors is composed of five companies: Kenai Offshore Ventures LLC, Archer Drilling LLC, Teras Oilfield Support Ltd., Frank’s International LLC and AIMM Technologies Inc.
The sale advisor Global Hunter Securities LLC said it has drawn up a list of more than 25 “potential financial and strategic partners” that might be interested in buying the assets.
Buccaneer is also looking to sell less valuable assets.
The company and its subsidiaries said they have received offers to purchase assets including “office equipment and supplies, drilling supplies and equipment, iron ore, and other miscellaneous property.” These “de minimis” assets are all worth less than $3,000 each and worth between $100,000 and $200,000 combined, according to Buccaneer.
The court will consider the request at a July 22 hearing.
The bankruptcy case continues to play out in other ways.
While the nine Buccaneer companies asked the court for permission to continue paying their remaining employees, some of whom are working at the producing Kenai Loop gas field, the companies have asked the court to reject contracts with Spartan Offshore Drilling LLC and All American Oilfield Associates LLC, which have been operating the Endeavour jack-up rig and the onshore Glacier No. 1 rig, respectively, for Buccaneer.
The claims to reject the rig contracts, as well as similar claims for unexpired leases, are estimated to be worth more than $100 million, according to the bankruptcy filings.
- ERIC LIDJI
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