American Eagle offers $70 million credit bid sale for company assets

By Kali Hays

New York, July 10 – American Eagle Energy Corp. proposed an asset purchase agreement with AMZG Acquisition, LLC on Friday to allow for a $70 million credit bid sale of substantially all company assets, according to a filing with the U.S. Bankruptcy Court for the District of Colorado.

As previously reported, when the company filed bid procedures for the sale in May, American Eagle said it was negotiating an asset purchase agreement with an informal group of the holders of its 11% senior secured notes due 2019 that was due to be filed by June 5.

Under proposed bid procedures for the assets, offers are due by 7 p.m. ET on July 24, and an auction will be held on July 29, if necessary.

If the sale to AMZG fails to close by Oct. 31, either party may terminate the agreement.

American Eagle is a Littleton, Colo.-based independent oil and gas acquisition, exploration and development company. The company filed for bankruptcy on May 8 under Chapter 11 case number 15-15073.

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