Vanguard Natural Resources seeks approval of $78.33 million asset sale

By Caroline Salls

Pittsburgh, March 21 – Vanguard Natural Resources, LLC requested court approval of the bid procedures for the proposed sale of some of the oil and gas assets of Vanguard Operating LLC, according to a motion filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

OXY USA Inc. is the stalking horse bidder, with a $78.33 million offer.

If OXY is not the high bidder for the assets, Vanguard will pay it a break-up fee of 3% of the purchase price and reimburse up to $500,000 of its sale-related expenses.

Competing bids are due by 5 p.m. ET on May 1 and must at least equal the amount of the stalking horse bid, plus the break-up fee and expense reimbursement, plus an assumed liabilities amount, plus a $2 million cash overbid amount.

An auction would be held on May 2, if necessary, and the sale hearing is scheduled for May 3.

The company has requested an April 5 hearing on the bid procedures.

Vanguard is a Houston-based oil and gas exploration and development company. The company filed for bankruptcy on Feb. 1 under Chapter 11 case number 17-30560.

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