Intervention Energy agent requests case dismissal if equity assigned

By Caroline Salls

Pittsburgh, Oct. 28 – Intervention Energy, LLC note purchase agreement administrative agent EIG Management Co., LLC asked the U.S. Bankruptcy Court for the District of Delaware to dismiss Intervention’s Chapter 11 bankruptcy case if a previously negotiated equity assignment occurs, according to a motion filed Friday.

EIG said a previous stipulation resolved a number of issues it raised during the Chapter 11 cases. Under that stipulation, EIG will immediately and automatically obtain 100% equity ownership of Intervention if the company fails to either obtain a qualified financing commitment by Nov. 15 or satisfy its obligations in full in cash by an outside date of Nov. 30.

“As these deadlines approach, the debtors have provided no indication that they will be able to obtain such financing – and because the stipulation contains broad mutual cooperation and information sharing provisions, EIG expects that it would have been apprised of any serious indications of interest with respect to a potential qualified financing commitment,” the motion said.

EIG said it would be surprised if Intervention could achieve the milestones set in the stipulation because market conditions have remained relatively flat since the company filed for bankruptcy “and have not come close to improving enough to significantly increase the value of the debtors’ assets.”

“The effectiveness of the equity assignment, if it occurs, will bring these cases to a crossroads where dismissal of IE LLC’s Chapter 11 case is the only path forward that makes financial sense for IE LLC and its creditors,” EIG said.

A hearing is scheduled for Nov. 22.

Based in Minot, N.D., Intervention Energy is a non-operating oil and gas exploration and production company. The company filed for bankruptcy on May 20 under Chapter 11 case number 16-11247.

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