Approach Resources buyer looks to terminate $192.5 million agreement

By Caroline Salls

Pittsburgh, April 1 – Approach Resources Inc. received a notice from buyer Alpine Energy Acquisitions, LLC terminating its agreement to purchase Approach’s assets for $192.5 million, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

“The company believes, and stated in a response letter sent to Alpine on March 31, 2020, that Alpine’s termination notice was based upon inaccurate factual allegations and was legally ineffective,” Approach said in the 8-K.

“The company vigorously disputes that Alpine is entitled to terminate the APA and, should Alpine fail to close the transaction in accordance with the APA, the company intends to pursue all available remedies against Alpine for breach of the APA.”

Approach said Alpine made a required $19.25 million performance deposit on Feb. 6.

If the purchase agreement is terminated, the deposit would be refunded to Alpine, and Approach would be required to pay Alpine $250,000 as an expense reimbursement.

Approach Resources is a Fort Worth-based oil and gas company. The company filed bankruptcy on Nov. 18 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 19-36444.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.