BJ Services gets $30 million bid for equipment, intellectual property

By Caroline Salls

Pittsburgh, July 27 – BJ Services, LLC requested court approval of the bid procedures for the proposed sale of its fracking equipment and intellectual property assets, according to a motion filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

The assets being sold include BJ Services’ right, title and interest in vendor contracts and related property related to its next-generation fracturing pump platform known as Titan.

TES Asset Acquisition, LLC, an affiliate of BJ Services equity sponsor CSL Capital Management, LP, will serve as the stalking horse bidder, offering to pay $30 million for the assets.

If approved, the company said a sale to the stalking horse bidder would save about 300 jobs.

The stalking horse agreement contains no bid protections to be paid to TES if it is not ultimately the winning bidder.

Competing bids are due by 12:59 a.m. on Aug. 11.

BJ Services is proposing that an auction be held on Aug. 12, if necessary, and the sale hearing no later than Aug. 14.

The minimum overbid increment will be $500,000.

A hearing on approval of the bid procedures is scheduled for July 29.

BJ Services is a Tomball, Tex.-based provider of hydraulic fracturing and cementing services to upstream oil and gas companies. The company filed bankruptcy on July 20 under Chapter 11 case number 20-33627.

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