ATP Oil & Gas gets OK to use lenders' cash collateral through Sept. 22

By Jim Witters

Wilmington, Del., Sept. 6 - ATP Oil & Gas Corp. won approval for its fourth emergency request to use the cash collateral of its debtor-in-possession lenders, according to a Sept. 5 filing with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the budget associated with the latest cash collateral order runs through Sept. 22.

Although ATP and the DIP lenders have negotiated a longer-term budget, the company said open issues remain regarding payment of professional fees in light of the fact that its asset sale did not close by the end of August as originally expected.

If the DIP lenders and estate professionals resolve the impact that the delay in closing has had and will have on professional fees since a carve-out notice was issued by the lenders on June 7, ATP said it will seek a hearing the week of Sept. 16 for approval of an updated budget that runs through the end of October.

ATP Oil & Gas is a Houston-based offshore oil and gas development and production company focused in the Gulf of Mexico, the Mediterranean Sea and the North Sea. The company filed for bankruptcy on Aug. 17, 2012 under Chapter 11 case number 12-36187.

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