Rockall committee asks court to reconsider approval of bid procedures

By Sarah Lizee

Olympia, Wash., March 29 – Rockall Energy Holdings, LLC’s official committee of unsecured creditors asked the U.S. Bankruptcy Court for the Northern District of Texas to reconsider its order approving the bid procedures for the company’s assets, according to a motion filed Monday with the U.S. Bankruptcy Court for the Northern District of Texas.

The court entered the bid procedures order on March 14, when the committee had not yet been formed or engaged counsel.

“Unlike several other first-day orders the court entered on an interim basis – orders with regard to which the newly-formed and -represented committee can be heard before those orders become final – the bid procedures order was entered as a final order,” the committee said in its motion.

“Accordingly, to be heard at all on the propriety of the bid procedures order’s many provisions, which directly affect the methods and timing of accessing the market of potential purchasers of substantially all the debtors’ assets, the committee is compelled, as its sole procedural opportunity, to file this motion for reconsideration under bankruptcy rule 9023, which requires such a motion to be filed no later than 14 days from the entry of the bid procedures order.”

Bid procedures

The company said it is hoping to choose a stalking horse bidder and provide bid protections that would include a 2.5% breakup fee and a $400,000 expense reimbursement.

Under bid procedures, the company has until April 18 to choose a stalking horse, bids are due by 6 p.m. ET on April 29, an auction will be held on May 4, and a sale hearing will take place on May 13.

The Dallas-based oil exploration and production company filed Chapter 11 bankruptcy on March 9 under case number 22-90000.

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