Court accepts Buccaneer settlement

A Texas bankruptcy court has approved a settlement between Buccaneer Energy Ltd. and its largest unsecured creditors, which allows the producer to proceed with an asset sale.

The U.S. Bankruptcy Court for the Southern District of Texas approved the deal Sept. 2.

The deal requires Buccaneer to set aside $10 million in state tax credits and other cash to repay unsecured creditors. The remainder of the assets generated during an upcoming auction would go to secured creditor AIX Energy LLC, unless AIX acquires the assets.

AIX’s secured claim is nearly $64 million.

The court subsequently extended the deadline for Buccaneer to finalize its bankruptcy plan until Oct. 14. The plan describes how funds from a sale will be distributed.

- Eric Lidji