Sheehan Pipe Line $30.75 million sale of equipment gets court approval

By Caroline Salls

Pittsburgh, June 20 – Sheehan Pipe Line Construction Co. received court approval of the $30.75 million sale of substantially all of its equipment to Ritchie Bros. Auctioneers (America), Inc., according to an order filed Monday with the U.S. Bankruptcy Court for the Northern District of Oklahoma.

As previously reported, Ritchie was the stalking horse bidder for the equipment with a $29.5 million original offer.

A total of $30.25 million of the final purchase price will be in the form of an up-front cash payment. The other $500,000 is in the form of a credit bid of the break-up fee that would have been paid to Ritchie if it had not been the winning bidder.

Proceeds received over and above the cash component of the purchase price will be shared under an agreement between Sheehan and Ritchie.

Sheehan, a Tulsa, Okla.-based pipeline construction company, filed bankruptcy on April 15. The Chapter 11 case number is 16-10678.

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