Judge Approves $220M Alta Mesa Sale With Big Covid-19 Discount

U.S. Bankruptcy Judge Marvin Isgur approves a modified sale of Alta Mesa Holdings and Kingfisher Midstream assets for $220 million, about $100 million less than the sale price approved before the recent collapse in oil prices.

• Buyer is still BCE-Mach III, a joint venture between Bayou City Energy Management and Mach Resources
  • BCE-Mach III failed to close the previous deal before financial markets began selling off in response to an oil producer price war and the spreading coronavirus
• Under the new terms, the final sale price could be as high as $240m depending on the price of oil when the deal closes, or could fall to as low as $200m
• The case is Alta Mesa Resources Inc. and Cimarron Express Pipeline LLC, 19-35133, U.S. Bankruptcy Court for the Southern District of Texas (Houston)

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Boris Korby

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