PostRock Energy trustee sets procedures for sale of company assets

By Caroline Salls

Pittsburgh, April 27 – PostRock Energy Corp.’s Chapter 11 trustee requested court approval of the bid procedures for the proposed sale of substantially all of the company’s assets, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Western District of Oklahoma.

Under the proposed procedures, bids are due by 6 p.m. ET on May 27.

Based on the bids received, the trustee will decide by 1 p.m. ET on June 30 whether to hold an auction for PostRock’s assets or exercise his right to designate a prevailing bid.

Qualified bidders will be informed of the baseline bid amount by 6 p.m. ET on May 30, and an auction will be held on May 31, if necessary.

Initial overbids must be at least equal to the baseline bid plus $25,000. Subsequent bids at auction must be made in minimum increments of $10,000.

The sale hearing will be held on or after June 1.

PostRock, an oil and natural gas company based in Oklahoma City, filed for bankruptcy on April 1. The Chapter 11 case number is 16-11230.

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