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Buccaneer Resources creditors object to bid procedures, stalking horse
By Kali Hays
New York, July 28 – Buccaneer Resources, LLC creditors AIMM Technologies, Inc. and All American Oilfield Associates, LLC objected to proposed bid procedures related to the company’s sale of substantially all of its assets, according to a Monday filing with the U.S. Bankruptcy court for the Southern District of Texas.
As previously reported, AIX Energy, LLC is the stalking horse bidder with a credit bid of $58.48 million.
An auction for the assets is set for Aug 18, and the company expects the sale to close by Aug. 29.
According to the creditors, the proposed procedures “seem principally designed to favor AIX and unfairly chill bidding by outside parties.”
Specific “flaws” in the proposed procedures include allowing outside bidders to “pick and choose” assets for purchase while AIX’s bid is for all assets including some that the creditors claim do not need to be sold and AIX not being required to allocate the value of its credit bid among the assets it would be purchasing.
As a result of investigation by Buccaneer’s committee of unsecured creditors, AIMM and all American Oilfield also suspect that “AIX may not even have a valid prepetition lien and security interest against the debtors’ and/or that any liens and security interests AIX does have should be equitably subordinated to the claims of general unsecured creditors,” according to the objection.
The creditors asked that the bid procedures be denied in their current form and that the objections be considered for a revised motion from Buccaneer.
A hearing to approve the bid procedures is set for Aug. 1.
Buccaneer, a Houston-based oil and natural gas exploration and production company, filed for bankruptcy on May 30. It is a subsidiary of Buccaneer Energy Ltd., a Sydney, Australia, company focused on developing oil and gas assets in Alaska. The Chapter 11 case number is 14-60041.
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