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MorningStar Buys Bankrupt Southland’s Assets for $11.3 Million

May 28, 2020, 8:54 PM

Bankrupt oil and gas developer Southland Royalty Co. LLC will sell its assets in Colorado and New Mexico’s San Juan Basin to a subsidiary of one of its equity owners for $11.3 million in cash.

Judge Karen B. Owens of the U.S. Bankruptcy Court for the District of Delaware approved the sale Thursday.

The buyer, MorningStar Partners LP subsidiary MorningStar Operating LLC, will also assume $3.9 million in contract cure costs and offered $2.1 million worth of concessions related to a management service agreement as part of the deal.

The sale results from a virtual bankruptcy auction held May ...