MTE, Auction Winner Riverstone Defeat Back-up Bidder’s Challenge

Bankrupt oil driller MTE Holdings LLC will proceed with its plan to sell a business unit to auction-winner Riverstone Holdings LLC for $66.8 million, after shunting a back-up bidder’s attempt to nullify the winning bid.

Judge Craig T. Goldblatt of the U.S. Bankruptcy Court for the District of Delaware, ruled Monday that the back-up bidder, Chato Energy LLC, won’t be declared the auction winner despite claims that private equity firm Riverstone failed to make its deposit on time after winning.

The ruling gives Riverstone more breathing room to move forward with its proposed acquisition of the MTE unit, MDC Energy, ...