Approach Resources proposes bid procedures for sale of company assets

By Caroline Salls

Pittsburgh, Dec. 12 – Approach Resources Inc. requested court approval of the bid procedures for the proposed sale of substantially all of its assets, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

Under the proposed procedures, Approach may select a stalking horse bid up to 10 days before the bid deadline. The company is also seeking court approval to offer to pay any stalking horse bidder a 3% break-up fee and reimburse the lesser of 1% or $250,000 of its sale-related expenses if that bidder is not ultimately the high bidder.

Competing bids are due by 6 p.m. ET on Feb. 14.

An auction will be held on Feb. 19, if necessary. Approach is asking the court to schedule the sale hearing for Feb. 26.

A hearing on approval of the bid procedures is scheduled for Jan. 7.

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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