Approach Resources asks court to enforce $192.5 million sale order

By Caroline Salls

Pittsburgh, April 6 – Approach Resources Inc. is asking the U.S. Bankruptcy Court for the Southern District of Texas to enforce its asset sale approval order and related purchase agreement and award it the fees and expenses incurred as a result of a delayed closing, according to a motion filed Monday.

As previously reported, the court approved the $192.5 million sale to Alpine Energy Acquisitions, LLC on March 4.

“Since the buyer contractually committed to purchase substantially all of the debtor’s assets, crude oil prices have crashed,” the motion said. “Now, the buyer wants out of its obligations to purchase the debtor’s assets. But the buyer has a problem. The buyer does not have a ‘contractual out’ for the fall in commodity prices.”

Approach said it was ready and able to close the sale on the April 2 outside closing date, but Alpine refused to honor its contractual obligations to close on that date.

Instead, the company said Alpine sent a letter on March 26 stating that it was terminating the purchase agreement. However, Approach said the buyer does not have the right to do so.

Approach Resources is a Fort Worth-based oil and gas company. The company filed bankruptcy on Nov. 18 under Chapter 11 case number 19-36444.

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