Nine Point Energy Holdings Inc. won court approval of an $18 million post-bankruptcy loan and a sales process that would deliver the oil and gas driller’s business to its lenders.
A group of lenders represented by agent AB Private Credit Investors LLC will provide the debtor-in-possession financing. DIP lenders include Prudential Insurance Co. of America, Goldman Sachs Bank USA, Orix Corporate Capital Inc., and Cargill Inc.
Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware on Monday also approved sales procedures for the Denver-based energy company.
Meadowlark Resources LLC, a company created by Nine Point’s lenders, was designated as the stalking horse bidder with an opening bid of forgiving $250 million of pre- and post-bankruptcy debt and assuming a number of Nine Point’s liabilities.
Nine Point will conduct a bankruptcy auction June 15, and the court will conduct a sale approval hearing June 17, Nine Point’s attorney, Caroline Reckler of Latham & Watkins LLP, said at a hearing Monday.
Nine Point, which has nearly 200 shale wells primarily located in Montana and North Dakota, filed Chapter 11 March 15. The company cited 2020’s precipitous oil price drop, the price war between Russia and OPEC countries, and the pandemic.
The case is In re Nine Point Energy Holdings, Inc., Bankr. D. Del., No. 21-10570, hearing 4/12/21.