Rex Energy proposes procedures for potential sale of company assets

By Caroline Salls

Pittsburgh, June 4 – Rex Energy Corp. requested court approval of the bid procedures for the proposed sale of substantially all of its assets, according to a motion filed Friday with the U.S. Bankruptcy Court for the Western District of Pennsylvania.

Rex said it will conduct a sale process “to test the market for interest in purchasing all or substantially all of the debtors’ assets.”

If the sale process does not result in the receipt of qualified bids, the company will complete a restructuring through a Chapter 11 plan under which 100% of its equity will be distributed to Rex’s debtor-in-possession lenders.

Under the proposed procedures, bids would be due by noon ET on July 26, an auction would be held on Aug. 13, if necessary, and a sale hearing would be scheduled for Aug. 16.

Bids must include a cash purchase price at least equal to the sum of the DIP lender/first-lien credit bid amount, fees due under the DIP facility, any other outstanding secured obligations and a wind-down amount.

Subsequent bids must be in minimum increments of $1 million.

A hearing on approval of the bid procedures is scheduled for June 28.

Rex Energy is a State College, Pa., oil and gas exploration and production company. It filed for Chapter 11 on May 18 under case number 18-22032.

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